An overview of various commodities, sectors, ETF & individual stocks that stand out as compelling trade ideas at this time, both longs & shorts. Took a while to get this one posted as I was working on publishing a few trade ideas after completing the video. playback speed can be increased in the settings to reduce video duration One of the trade ideas covered in this video is LMT, which still looks like an objective short. However, I opted to go with the ITA (Aerospace & Defense Sector ETF) instead for the additional diversification provided by the ETF although LMT tends [...]
Several swing trade & potential investment ideas that stand out at this time including gold, natural gas, select commodities & stocks. An update on the broad markets via the Nasdaq 100 (QQQ & /NQ emini futures) is also covered at the end of the video.
Analysis & trade ideas with buy points & price targets on various commodities & commodity tracking ETNs.
JO (coffee ETN) was recently added as an aggressive, "catch-a-falling-knife" trade on Tuesday with JO triggering the suggested stop of any move below 15.90 for a 3.6% loss on Thursday. That impulsive sell-off on Thursday was indicative of a selling climax as well as a potential wedge over-throw on both $COFFEE (continuous futures contract) JO (coffee ETN). Thursday's sell-0ff also reversed just shy of a long-term support level on $COFFEE. As such, I'll be monitoring coffee prices going forward for another possible long-side entry.
While certainly a counter-trend, catch-a-falling-knife trade, JO (coffee ETN) will be added as a long swing trade here at around the 16.48 level while at the bottom of this small falling wedge (white downtrend line) within the much larger falling wedge pattern. While the daily chart of JO below shows some nearby resistance levels where reactions are likely, which could be used as early price targets, the official targets for this trade are T1 at 17.89 & T2 at 18.75. A third target around the 20 area might be added, depending on how the charts develop going forward. The [...]
While I've addressed the pros & cons of trading commodity ETNs as well as my reasoning for posting analysis & trade ideas on the site in the past, I believe this is an important topic that should be revisited, especially in light of my recent post highlighting various agricultural commodities that appear to be setting up for potential rallies in the coming months. The argument, or opinions expressed by other traders on more than one occasion on the site, is that commodity tracking ETNs are horrible trading & investing vehicles that should be avoided due to their underperformance of the underlying [...]
As mentioned in this morning's market update, various agricultural commodities appear to have some of the most attractive R/R profiles right now, especially for long-side trades. The charts seem to indicate that many of these ag commodities appear to be setting up for attractive swing trades with rallies that could last several months & even into 2018. Adding commodities to one's portfolio, whether a trading account or investment account, allows for diversification with little to no correlation with the stock market, fixed income, precious metals or other asset classes. Each of these commodity tracking ETNs (or one can use futures, if [...]