futures markets : softs and financials

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Futures Market Review : Futures Market Review : Financials and Softs Financials and Softs New week starts, it is time for us New week starts, it is time for us – futures traders - to be back to – futures traders - to be back to review review futures markets futures markets to see what to see what should we note for our trading in should we note for our trading in the next few days. Are you ready? the next few days. Are you ready? Let’s go! Let’s go!

Author: jack-johnson

Post on 03-Nov-2014

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New week starts, it is time for us – futures traders - to be back to review futures markets to see what should we note for our trading in the next few days. Are you ready?

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Page 1: Futures Markets : Softs and Financials

Futures Market Review : Futures Market Review : Financials and SoftsFinancials and Softs

New week starts, it is time for us – futures New week starts, it is time for us – futures traders - to be back to review traders - to be back to review futures marketsfutures markets to see what should we to see what should we note for our trading in the next few days. note for our trading in the next few days. Are you ready? Let’s go!Are you ready? Let’s go!

Page 2: Futures Markets : Softs and Financials

First of all, we will stop by the Soft First of all, we will stop by the Soft market to see what’s going on market to see what’s going on around there. As the around there. As the US dollarUS dollar strengthened over investor fears, strengthened over investor fears, the Brazilian real dropped the Brazilian real dropped significantly and since it is one of significantly and since it is one of the important currencies to the the important currencies to the pricing of soft commodities that is pricing of soft commodities that is a big deal. It was a big factor this a big deal. It was a big factor this past week for coffee, sugar, oil past week for coffee, sugar, oil and cotton. and cotton.

Page 3: Futures Markets : Softs and Financials

And as long as there is more And as long as there is more downside to come, all will remain downside to come, all will remain under pressure this week as well. under pressure this week as well. The other soft market, cocoa has The other soft market, cocoa has its own set of circumstance, and all its own set of circumstance, and all commodities seem to suffer from commodities seem to suffer from the impact of falling demand the impact of falling demand forecasts given the fear at work in forecasts given the fear at work in the macro economy.the macro economy.

Page 4: Futures Markets : Softs and Financials

So expect more of the same this So expect more of the same this week, lower prices among the week, lower prices among the members of the soft complex. members of the soft complex. Individually, there may be Individually, there may be technical attempts to rally. We are technical attempts to rally. We are seeing higher prices in early seeing higher prices in early trading this morning in several trading this morning in several markets, but these should be used markets, but these should be used as selling opportunities, rather as selling opportunities, rather than signals that prices have than signals that prices have flushed out the weakness and are flushed out the weakness and are ready to move higher.ready to move higher.

Page 5: Futures Markets : Softs and Financials

In other words, soft markets are In other words, soft markets are responding in sympathy to the responding in sympathy to the recovery in the equity markets, recovery in the equity markets, and that is to be expected since and that is to be expected since the markets carry relationships. the markets carry relationships. Worth mentioning is that they are Worth mentioning is that they are however, not one and the same.however, not one and the same.

Page 6: Futures Markets : Softs and Financials

Commodities will react to events Commodities will react to events in the world economy and in the world economy and currency relationships, but they currency relationships, but they also will have their own unique also will have their own unique fundamentals. Right now supply fundamentals. Right now supply seems not to be the focus, the seems not to be the focus, the focus is rather on demand right focus is rather on demand right now, and the fear of demand now, and the fear of demand falling.falling.

Page 7: Futures Markets : Softs and Financials

***Chart courtesy Gecko Software’s Track n’ Trade Pro***Chart courtesy Gecko Software’s Track n’ Trade ProPast performance is not necessarily indicative of future Past performance is not necessarily indicative of future

results.results.

Page 8: Futures Markets : Softs and Financials

Just leave the home of Soft, we Just leave the home of Soft, we will go next to Financial market. will go next to Financial market. There will be some necessary There will be some necessary points for us to note. points for us to note. The word that bothers this trader The word that bothers this trader this morning is hope. This word is this morning is hope. This word is being thrown around which should being thrown around which should not sit well with investors. The not sit well with investors. The stock market may open higher on stock market may open higher on hopes that policymakers are hopes that policymakers are putting new plans together to help putting new plans together to help with the debt crisis.with the debt crisis.

Page 9: Futures Markets : Softs and Financials

The hope that Greece does not The hope that Greece does not default is where the focus lies. If default is where the focus lies. If a person is resting their families a person is resting their families future on hope then one needs future on hope then one needs to take another look at how they to take another look at how they formulate wealth.formulate wealth.

Page 10: Futures Markets : Softs and Financials

Geithner seems concerned and Geithner seems concerned and believes that the U.S. is still fragile believes that the U.S. is still fragile from the recession of 2008. He from the recession of 2008. He also thinks that if European also thinks that if European nations default that the U.S. could nations default that the U.S. could have serious problems. Geithner have serious problems. Geithner also brought up that the U.S. will also brought up that the U.S. will cut the deficit by 3 trillion in over cut the deficit by 3 trillion in over 10 years.10 years.

Page 11: Futures Markets : Softs and Financials

Honestly, who cares about 3 Honestly, who cares about 3 trillion! This country spends more trillion! This country spends more than 1 trillion a year. How about than 1 trillion a year. How about the U.S spends half of that and the U.S spends half of that and cuts 5-7 trillion. Maybe a flat tax cuts 5-7 trillion. Maybe a flat tax for everyone so the people that for everyone so the people that have created success do not feel have created success do not feel like they are bailing everyone else like they are bailing everyone else out?out?

Page 12: Futures Markets : Softs and Financials

The USD Index is down -0.19 to The USD Index is down -0.19 to 78.31 and the Euro is down-78.31 and the Euro is down-0.0034 to 1.3473. The Euro may 0.0034 to 1.3473. The Euro may fall further but some may leave fall further but some may leave the dollar and buy stocks. A short the dollar and buy stocks. A short term burst in the dollar does not term burst in the dollar does not mean it will keep going. The level mean it will keep going. The level of 1.2750 might be possible over of 1.2750 might be possible over the next few weeks.the next few weeks.

Page 13: Futures Markets : Softs and Financials

Some believe a bull rally could Some believe a bull rally could come over the next few months come over the next few months and are positioning Europe and and are positioning Europe and keeping cash available if this keeping cash available if this occurs. Because of limited time, I occurs. Because of limited time, I cannot share with you all the cannot share with you all the information on Futures markets. information on Futures markets. You can check for more at You can check for more at PitguruPitguru Reviews Reviews this week. this week.

Page 14: Futures Markets : Softs and Financials

***Chart courtesy Gecko Software’s Track n’ Trade Pro***Chart courtesy Gecko Software’s Track n’ Trade ProPast performance is not necessarily indicative of future Past performance is not necessarily indicative of future

results.results.

Page 15: Futures Markets : Softs and Financials

Disclaimer:Disclaimer:

Past performance is not indicative Past performance is not indicative of future results. Trading futures of future results. Trading futures and options involves substantial and options involves substantial risk of loss and is not suitable for risk of loss and is not suitable for all investors.all investors.

Page 16: Futures Markets : Softs and Financials

Fundamental factors, seasonal Fundamental factors, seasonal and weather trends, daily news, and weather trends, daily news, and other current events may and other current events may have already been factored into have already been factored into the markets. The use of stop loss the markets. The use of stop loss or contingent orders may not or contingent orders may not protect profits and may not limit protect profits and may not limit losses to the amount intended. losses to the amount intended. Certain market conditions make it Certain market conditions make it difficult or impossible to execute difficult or impossible to execute such orders.such orders.