September 13, 2020
STILL Buying “Everything”
I will repeat that the buying that is happening in commodities, pretty much across the board, is NOT coming from individual speculators or farmers like you or me…or even some guy who is running a hedge fund and manually calling the shots. Simply stated, I firmly believe there are ENORMOUS funds out there that are COMPUTER PROGRAMMED to buy/participate & add to uptrending commodities…which again, now includes just about every major market we trade…And at the same time, I STILL see analyst after analyst after analyst STILL preaching the sell side on these markets that appear to have solidly bottomed many months ago, and in some cases, absolutely begun to take off on the upside…And if you have any experience in how this stuff really works, you certainly will understand the significance that the overwhelmingly majority of supposed “experts” ARE bearish.
MY IMPRESSION? As always, I might be dead, dead wrong but I think the 7 markets listed below are ALL on the move…and ALL have dynamic potential…And if you have the risk capital, I urge you to own some piece of as many of them as you can…to, simply, simply stated: JUST GO WITH ANY OF THESE MARKETS THAT LOOKS LIKE IT IS “GOING” AND TO ASSUME THAT VERY BIG, RELATIVELY NON-STOP MOVES MAY BE TODAY’S NORM.
I would also add: Do NOT sit there and think, “Well, that makes sense but it looks like I have missed it.” Look at what Stocks, Gold, Lumber, Copper etc. have been doing…and understand that all 7 of these commodities are JUST NOW coming off their lows, and in reality, haven’t gone ANYWHERE at all big yet…
If you agree, call me Monday and let’s figure out what you can do.
Here’s where they all were as of Friday’s close…Soybeans, Corn and Hogs are the recent leaders…I continue to recommend owning ALL of these markets…I might be dead, dead wrong but I think they are ALL going…And I have no idea, week by week, which of them will be the “hottest.”
Here’s a question…In the current fiscally flooded environment, AFTER what I believe to have been the WORST of the pandemic’s economic effects have been absorbed by the markets, do you think that several months from now, these commodities will be ABOVE…or BELOW…their current price levels? If your answer is “above,” and you have the money to risk, I urge you to pick up the phone and call me.
All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: all of them