I’ve been receiving endless inquiries regarding the new data fee charges levied by the ICE exchange, so I felt compelled to address the issue publicly to ensure the trading community understands the situation.Read More
Lately, it seemed to Jim Cramer that the crazy linkage between oil and stocks would last forever. Whenever oil would go up, the market would rally; whenever oil went down, stocks were crushed.
"That is lunacy, as I've said repeatedly, because the vast, vast majority of companies in the S&P actually benefit from cheaper crude." ~ Jim Cramer
Futures and Options Expiration Dates
Ten Years of Supply and Demand Tables
Government & Industry Report DatesRead More
This commodity trading newsletter was distributed to DeCarley brokerage clients on February 10, 2016.
Gold on the Verge of Break-out or Bust!
We’ve been discussing the lack of investor interest in gold since the 2013 swoon. In the meantime, gold has failed to gain material footing, but has also managed to hold trend-line support. Nevertheless, the lack of direction has caused most speculators to move money into other arenas. In fact, near the late 2015 lows the long interest in gold by large speculators was at the lowest level seen since 2002! You might recall gold prices were hovering between 0 and 0 per ounce at the time. In our opinion, this suggests the bulls have plenty of buying power should a sustainable rally emerge.Read More
The basic definition of leverage is to use a financial tool or instrument to maximums the advantage of a speculative undertaking. A prominent example of investing on leverage is the purchase of a home with a minimal down payment. Although the buyer of the home is entitled to any price appreciation of the home, he is also subject to the pain of declining home values. Yet, his profits and losses in regard to the home value are exaggerated on a percentage basis because of a lack of true equity in the home. Simply put, if a home buyer puts ,000 toward a down payment for a 0,000 home, a 10% increase in the value of the home to 0,000 results in a 100% return to the home owner but a decline to 0,000 results in a 100% loss! It is easy to see how leverage can be either a very expensive, or very lucrative, venture.Read More
Traders spend countless hours paper trading, studying charts and dissecting fundamentals but they often fail to prepare themselves for 90% of the challenge...emotion. DeCarley Trading believes that success is only minimally determined by strategy and knowledge. As a result, it is critical to be aware of the potential emotional obstacles that come with active trading, attempt to prevent them, identify them when they arrive, and behave accordingly. Join us for a discussion on effectively managing emotions before, during and after a trade.Read More
I’ve been a commodity broker since 2004. Throughout that time we’ve seen massive shifts in the manner retail traders execute orders in the futures and options markets, but more importantly we’ve seen transaction costs plummet due to massive improvements in execution efficiency.Read More
The Commodity Futures Trading Commission issues a weekly report outlining the aggregate position of traders in three major categories; hedgers, large speculators, and small speculators. We believe that the report, known as the Commitments of Traders, offers traders a wealth of information that might be helpful in predicting future commodity market movement.Read More
Nevertheless, there are some compelling arguments to suggest that option sellers face favorable odds of success over option buyers, or outright futures traders. But, even putting the odds in your favor doesn’t guarantee a favorable outcome. Here are some aspects of option selling that should be considered before employing a premium collection strategy.Read More
The practice of option selling is a controversial strategy for commodity option traders to partake in. Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. However, there are a limited number of brokerage services that recognize despite the challenges of option selling, it likely offers the highest long-term prospects for successful trading. Accordingly, such brokers give their clients the freedom to implement a short option strategy. We are a part of the minority commodity brokers that believe our clients should be given the opportunity to sell options without hassle. Nevertheless, option selling is far from an “easy-money” venture; there is a reason many brokerage firms shy away from option selling.Read More