JO, Coffee ETN Stopped Out on Potential Selling Climax

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.

Jun 24, 2017 11:55am|Categories: Completed Trades - Long, Gold & Commodities|Tags: , |Comments Off on JO, Coffee ETN Stopped Out on Potential Selling Climax

JO Coffee ETN Trade Setup & 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 [...]

Jun 20, 2017 9:45am|Categories: Completed Trades - Long, Gold & Commodities|Tags: , |Comments Off on JO Coffee ETN Trade Setup & Entry

Trading Commodity ETNs

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 [...]

May 23, 2017 1:24pm|Categories: Gold & Commodities, Trading Tips|Tags: , , , |2 Comments

Agricultural Commodities Looking Bullish

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 [...]

May 22, 2017 12:46pm|Categories: Gold & Commodities|Tags: , , , , , , , , , , |9 Comments

WEAT (wheat) & JO (coffee) Updates

I've had a couple inquires in the trading room for updates on the WEAT Active Trade as well as JO (Coffee ETF), which was mentioned as poised to break out of a bullish falling wedge pattern in the recent 2017 Agricultural Commodities Outlook post. (that wedge was shown on the chart of $COFFEE) WEAT has moved steadily higher since breaking out above the bullish falling wedge pattern, easily taking out the R1 resistance level. Barring the typical counter-trend pullbacks along the way (likely at the initial target levels), my expectation is for a continued move to at least the T3 level [...]