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Tuesday, November 20, 2012

Medium Term Commodity Market Outlook System

I use a fairly basic technical trading system (for my non-index program) that monitors commodity markets and calls them bullish, bearish or neutral. It's probably not much better than asking a 4 year old "which direction is this chart going?" but then having a four year old is a fairly sophisticated thing.
This morning, the outlook called crude neutral from short. Hmmm, and then by midday the market broke two dollars lower! Peace may be breaking out in Gaza.
The outlook, as with many systems, may best be used as a contrary indicator when it has extreme readings.  We started November all bearish and today it is mixed. Good job on unintended consequences.
Another note: last night for the first time in November my benchmark, the VistaCTA commodity basket, closed above its Oct31 close.  It's always nice to have an up month. We'll see how long that lasts.
Tomorrow is the day before Thanksgiving, one of the best days of the year to trade, especially on the close. Gobble, gobble. Happy Turkey Day!

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