Andy_Hecht

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In early March, when Russia invaded Ukraine, the oil price soared to the highest levels since 2008. While the energy commodity did not reach a new record high, it came close. Nearby ICE Brent futures reached $139.13 per barrel, only $8.37 below the 2008 record peak. The NYMEX WTI futures moved to $130.50 per barrel, $16.77 below the 2008 high. $100 has become...

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Markets across all asset classes hate uncertainty because it causes traders, investors, and all market participants more than a bit of indigestion. Fear and greed are emotions that drive impulsive behaviors. Effective decision-making depends on a rational, logical, and reasonable approach to problem-solving. The Fed finally addresses inflation Recessionary...

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In May 2021, the nearby COMEX copper futures contract reached a record $4.8985 per pound. After a correction to just below the $4 level in August 2021, the red nonferrous metal made higher lows and higher highs, leading to another all-time peak at $5.01 per pound in early March 2022. Range trading gives way to a downside break Goldman Sachs believes higher...

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The US dollar and the euro are the world’s reserve currencies. Political and economic stability and free convertibility are the requirements for reserve currency status. Central banks and governments worldwide gold the US and European currencies as reserve assets. The exchange rate between the US dollar and the euro is multifactorial. Interest rate...

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Volatility in markets creates opportunity, but as risk is always a function of reward, the more the upside, the greater the potential for losses. Since natural gas futures began trading on the NYMEX in 1990, more than a few market participants have lost fortunes in the market that has traded as low as $1.02 and as high as $15.65 per MMBtu. Over five times...

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The soft commodities sector of the commodity market can be highly volatile. Historically, sugar, coffee, cotton, cocoa, and frozen concentrated orange juice futures that trade on the Intercontinental Exchange have doubled, tripled, and halved in value over short periods. While clothing and other consumer goods depend on the cotton market, the other sector members...

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March comes in like a lion and goes out like a lamb, and April showers bring May flowers. In the northern hemisphere, farmers are now planting the crops that will feed the world after the fall harvest season. Mother Nature is typically the primary determinate of agricultural products as the weather conditions determine if there will be enough supplies to feed the...

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The worldwide pandemic gripped the markets two years ago, throwing the global economy into a brief tailspin. In hindsight, the decline in markets across all assets seems like the blink of an eye. At the time, it felt like an eternity. Crude oil explodes and becomes very volatile Natural gas at an unseasonal high Coal reached a new record peak US energy...

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The pound sterling, the United Kingdom’s foreign currency instrument, was the global reserve currency in the 19th century and the first half of the 20th century. For decades, the US dollar has been the world’s reserve currency, which became official in 1944 after a delegation from forty-four allied countries decided that the world’s currencies would no longer be...

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Henry Clay was a US Senator from Kentucky, the Speaker of the House of Representatives, the US Secretary of State, and a Presidential candidate in the 1800s. His legacy and nickname were “The Great Compromiser” for his involvement with the Missouri Compromise, the Compromise Tariff of 1833, and the Compromise of 1850. As Henry Clay understood, any great compromise...

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A perfect trading environment? Volatility is a mixed blessing. Day traders love lots of action as it creates opportunities to make or lose money. Day traders are action junkies, looking for price moves and technical patterns like predators hidden in the reeds to pounce. Trade or investment- Make a choice before pulling the trigger Trading- One set of rules ...

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A successful trader must be like a chameleon, willing to change with market conditions. Markets reflect the economic and geopolitical landscapes. The global pandemic changed many assumptions, forcing market participants to develop new skills to deal with the price carnage in early 2020. The impact of unprecedented central bank liquidity and government stimulus...

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Commodities can be seasonal assets. Fuel and nutritional requirements tend to reflect the weather conditions during the times of the year that are cold and when the weather warms. As February ends and March arrives this week, the old saying that March comes in like a lion and goes out like a lamb. The oldest written reference to the “lion/lamb” proverb comes from...

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Crude oil came close to a triple-digit price last week for the first time since 2014. Natural gas prices have soared in Europe and Asia, and US prices rose to the highest level since 2008 when the February NYMEX futures contract spiked to over $7.30 per MMBtu in late January. The chicken and egg economic dilemma may be, which came first, inflation or rising...

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The Chinese New Year just passed, and we are now in the year of the Tiger. “May you live in interesting times” is often considered the translation of a traditional Chinese curse. Markets reflect the economic and political landscapes In 2021 rising inflation was at the center of the stage Inflation will continue to impact markets in 2022 and beyond ...

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Gold has been coveted by humans long before there were stocks, bonds, currencies, and other investable assets. The precious metal outdates the Bible’s old testament, with more than four hundred references to gold. Gold is a forever commodity as each ounce of the metal ever produced in the history of the world remains as part of the global stock. Around 197,576...

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The price of any asset is always the correct price because it is the level where buyers and sellers meet in a transparent environment, the marketplace. A price trend is the most accurate reflection of the market’s sentiment. When buyers are more aggressive, prices rise, and when sellers overwhelm buyers, prices decline. The stock market trend reversed The S&P...

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The lumber price was nothing short of wild in 2021. After rising to a new all-time high at $1711.20 in May, the price plunged, reaching a bottom at $488 per 1,000 board feet in August. Lumber fell to under one-third the price at the high in three months. Rates are heading higher Lumber has been rallying A spring scramble for new homes Infrastructure...