Posted on April 19, 2016 by Mitchel LaRocca
For months, actually for years there has been a gradual erosion of commodity prices. Just a few years ago Crude Oil was trading at $147 per barrel, Sugar at 36 cents per pound, Wheat at $13.00 per bushel, Coffee at $3.00 per pound and Gold at $1,900 per ounce. Over the recent months most of those markets traded at one-half to two-thirds of those prices. Sugar reached a low of 10.00, Wheat dropped to 4.35 and Coffee traded down to 111. In the case of Crude Oil it dropped by over 80 percent! Yes, deflation has been prevalent in many markets as global economies navigate through a sea of uncertainty, stagnant growth, negative interest rates and slack demand. However, it appears things are changing.
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Posted on April 14, 2016 by Eric Twitty
There is a lot of turmoil in the world today. Western governments have massive debt, slowing economies, and are moving towards socialism. Governments operate at massive deficits with no cuts in spending in sight. Higher taxes, negative interest rates, and massive amounts of money creation are all tools governments are using to increase revenues. The U.S. Government has more debt than any nation in the history of mankind. The Federal Reserve is on the verge of insolvency. These aren’t just statements made by me, the numbers are out there for anyone who cares enough to look. The Fed’s assets and liabilities are so bloated that even the slightest drop in the value of their assets will give them a negative net worth. You think their asset values won’t drop? Look at their biggest holdings. They are bonds, which are near all time highs, and mortgage backed securities, which were the […]
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Posted on February 13, 2016 by Mitchel LaRocca
Current global conditions are volatile to say the least. Few sectors have escaped the quick shifts in sentiment seen over the last few weeks. Already in a heightened state of anxiety over oil prices, growth rates and demand concerns, investors were given the headline news shock of negative interest rates in Japan! The almost immediate reaction seemed to be, “If they have to move to negative interest rates to stimulate their economy just how bad are things”? With global stock indexes in a very prolonged, yet tentative bull run, many participants have embraced “risk off” attitudes. As liquidation began and concerns grew the two “safe” areas of choice appear to be the U.S. Treasuries and the Precious Metals markets. Multi-year highs have been reached in both areas. Now the most frequently asked question is, “Will this continue”?
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Posted on July 1, 2015 by Walter Otstott
The Drachma, I mean drama, of Greece continues. Even though the country accounts for only 2% of the Eurozone’s GDP, the Euro Currency Unit continues to flail up and down as traders try to get a handle of the situation. Losses some have taken in the currencies (stocks and bonds too) are taking on tragic proportions which would make Sophocles proud. This writer has been flat in the Euro and greenback in the last few weeks (Exiting long Euro while the getting was good), but am under some pressure in the long Australian Dollar. In spite of possible overtures from China and Russia to bail out Greece (Threatening the NATO alliance), the ECB cannot give Athens preferential treatment. To do so would be a disaster; Italy, Ireland, Cypress, Portugal and Spain would be up in arms in that they embraced austerity measures. Long story, short (pun not intended), am sticking […]
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Posted on June 24, 2015 by Mitchel LaRocca
The Sugar market has been in an extended downtrend for some time. Numerous factors including supply questions, currency valuations and outside market forces adding questions about demand have all contributed. However, multiple time frame charts offer the possibility of significant support. In addition, sugar production for Brazil’s Center-South region recently was disappointing. If a shift to more sugar cane for ethanol continues we believe the combination of technical chart formations and fundamental developments allows for lower risk entry points for a potentially significant rally. The Sugar market can be volatile and we are considering both futures and options strategies based on price objectives and risk tolerance. See chart below (indicators included). For additional information and risk parameters please contact Mitch LaRocca @ 972-387-0080 or firstname.lastname@example.org
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