Golden Opportunity?

Posted on August 27, 2017 by Mitchel LaRocca

The Gold market has essentially traded sideways within a range from approximately $1200 – $1300 all of 2017.  The same factors that faced this market in January still influence the price today.  Global macro-economic uncertainty, central bank interest rate decisions and a see-saw of “risk on, risk off” sentiment continue to keep Gold in a $100.00 trading range.  However, recent events domestically and abroad have allowed Gold to climb towards the break out area of $1300.00 – $1310.00 per ounce.  A clearly defined channel such as shown below opens a variety of trading opportunities for those looking for a return to the bottom of the channel or a surge in price above the year’s highs.  Technicians look prepared to jump on board if those areas are breached. For additional information and risk parameters please contact Mitch LaRocca @ 972-387-0080 or mitch@dallascommodity.com

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Wheat / Corn Spread

Posted on August 27, 2017 by Mitchel LaRocca

The drop in grain prices has been steady and significant.  There will be an area of value where prices support but choosing the exact price in time is difficult.  We believe one way to approach “picking a bottom” is to use inter-market spreads.  For example, the Wheat vs. Corn.  There appears to be some chart support at these lower prices and we believe the price relationship could rebound as much as twenty to thirty cents from current levels.  A spread trade is created by simultaneously buying Dec. Wheat and selling Dec. Corn.  A correction in the price to a greater difference (from the 73-75 cent range) towards 90 -95 is the goal. For additional information and risk parameters please contact Mitch LaRocca @ 972-387-0080 or mitch@dallascommodity.com  

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A Common Misconception About the US Dollar Index

Posted on February 22, 2017 by Eric Twitty

The Dollar Index is not a good indicator of the purchasing power of the US dollar.  You must remember that the dollar value quoted is just an index of its value relative to a basket of six currencies.  The Euro makes up the majority of this basket.  The breakdown is: Euro- 57.6% Japanese Yen- 13.6% Pound Sterling- 11.9% Canadian Dollar- 9.1% Swedish Krona- 4.2% Swiss Franc- 3.6% As you can see, the Dollar Index value is very dependent on the Euro.  With the possible breakup of the European Union, you could potentially see a major rally in the US Dollar Index without putting any bearish pressure on commodity prices.  With a breakup of the EU, you could even see a major rally in Gold and Silver, even though the Dollar would likely surge to multi-decade highs. For additional information and risk parameters please contact Eric Twitty at 972-387-0080 or erict@dallascommodity.com.

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Silver To Twenty?

Posted on June 2, 2016 by Walter Otstott

From a strictly technical POV silver looks poised for the next leg up on its renewed bull market: 1) Pivot support is in a wide band from $15.50 – 16.00. 2) The 200-day moving average is ~$15.75 (middle of the aforementioned zone). 3) Just north of the 200-day average is a ~50% Fibonacci retracement level of 2015’s lows to 2016’s erstwhile highs. For those who don’t know your Greek and want a little fundamental scuttlebutt, copper and nickel mines are being shuttered on account of weak demand from China, et al. Silver happens to be a by product of such mining activity. Silver can be very volatile (No kidding?); be sure to employ risk controls whether using futures or options. You don’t want your silver investment to tarnish! Adjusted for inflation, silver should be north of $150 per ounce. For additional information and risk parameters please contact Walter Otstott @ 972-387-0080 […]

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What’s happening in the Silver Market?

Posted on April 20, 2016 by Mitchel LaRocca

The precious metals sector of the market has been under pressure for quite some time.  There are multiple reason, including economic uncertainty, sluggish global growth along with slack investment and industrial demand.  However, the environment seems to be changing and there seems the deflationary environment that has persisted is beginning to abate and, dare we mention, a hint of “re-inflation” is at hand.  With the never-ending mix of market pundits and “headline news” it is often extremely difficult, especially in the midst of a macro-economic shift, to determine cause and effect.  However, a picture can often put things in perspective quickly.  With that in mind, look at the monthly Silver chart below — you be the judge.  Has demand returned?  Has the prospect for improved economic activity and a more “inflated” economy entered the market?  Will the moving average hold?  Do the technical indicators tell us anything? Will Silver prices recover […]

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This material has been prepared by a sales or trading employee or agent of Dallas Commodity Company and is, or is in the nature of, a solicitation. This material is not a research report prepared by Dallas Commodity Company's Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.