Crude Over Crypto

Cryptocurrency may seem less attractive these days as the invasion of Ukraine increases the volatility of crude oil  As war rages in Ukraine, crude oil is impersonating a cryptocurrency. The price for West Texas Intermediate contracts (WTI) jumped nearly 7% in one day—the commodity’s biggest rise since record keeping began.   The relationship between bitcoin … Continued

Slippery Oil Prices

Predicting the future price of black gold isn’t easy  The economy has apparently withstood this year’s 45% rise in the price of oil, but monetary policymakers remain concerned about the commodity’s future. Higher oil prices can dampen demand in general, as consumers and businesses spend a larger portion of their budgets on oil-related products and … Continued

Crypto & Cannabis Contrarians

The repeated highs of recent years don’t guarantee stock prices will never again dip, crash or go sideways Some investors prefer to buy a stock or option that’s up 100%, while others grab up a security that’s down on the year. It’s the classic debate between following the trend or taking the contrarian view, and … Continued

The Wall of ‘What, Me Worry?’

The repeated highs of recent years don’t guarantee stock prices will never again dip, crash or go sideways In old Wall Street adage says that the stock market “climbs a wall of worry” into bullish territory, and that “bear markets slide down a slope of hope.” Mad Magazine’s Alfred E. Neuman is known for having … Continued

Grain: The Next GameStop?

Even corn and soybeans are not immune to the perils of social media. According to online chatter, grain prices in 2022 will hit $18 to $19 per bushel of corn, $30 for soybeans and $42 to $45 for wheat. While those price forecasts may seem far-fetched, anything is possible and the 2020 price action on … Continued

Make up for Missed Opportunities

Believe it or not, the market for U.S. dollars bears some similarity to GameStop (GME) stock. How? Both rallied from historical lows to start 2021, fell back to those lows in February and woke up again in March. So where does that leave them? In an awkward position that has often brought traders consternation: a … Continued

The Low Bar to Trading High-Action Currencies

Think of foreign exchange, or FX, as the “cult classic” of asset classes. Compared with investors in mainstream markets—like stocks and commodities—FX traders are fewer in number but certainly more passionate. Whether volatility runs high or low, foreign exchange trading groups buzz with talk of currency crosses and interest rate comparisons.  But traders don’t need … Continued

Pairs Trading Futures

Futures traders have numerous products, tools and strategies to take advantage of price extremes and ranging markets, but pairs trading is something completely different. Pairs trading uses correlations and divergences between two markets to capture a potential profit. While it isn’t riskless, investors who understand how pairs trading works and know how to control risk … Continued

Bond Basics

The stock market comes to mind when people think of trading. After all, stocks breed excitement. Equities have been on a tear for most of 2020. Some potential investors find bonds mysterious, but it all comes down to lending. Companies and governments require funding as well, and they often meet their need for capital by … Continued