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

Less Than Zero

All of the attention in markets was focused on crude oil the week of April 20, when on that Monday and Tuesday, the price of West Texas Intermediate (WTI) crude oil fell to a new all-time low, below zero, and to negative $40.32 per barrel in the expiring May futures contract. Any trader who had … Continued

Currencies’ Future

Most traders don’t pay much attention to foreign currencies or their value relative to the dollar. But everything that’s traded has a dollar component. Whether it’s gold, crude or soybeans, traders buy and sell them priced in dollars. That’s why rises and falls in the value of the dollar can have a direct impact on … Continued

Inversion in Treasuries: Two Ways to Trade

A savvy futures trader’s take on the markets Rip van Winkle slept for 20 years, but that was 200 years ago. Today, van Winkle’s smart phone would probably disturb his slumber after a mere 12 years.  So suppose the Washington Irving character nodded off back in 2007 and awoke last month. He would have been … Continued

Metals Detector

A savvy futures trader’s take on the markets How about this for a new idea: The Beach Exchange. It’s based on the treasure hunters who scan the shoreline with metal detectors in search of hidden objects of value. It’s not just a hobby because some beachcombers make a living by selling the rings, watches, coins … Continued

Oil and the Dollar

Crude oil and the U.S. dollar have a marriage made in a therapist’s office. Sometimes there’s frustration, sometimes there’s tension—but they are forever tied to each other. As if to celebrate this union, crude oil and the dollar are doing something they’ve only done 11 times in the past 35 years. They’re moving in the … Continued