Friday commodity market rankings 1/11/19, By Brad King
What catches my eye after a violent end to 2018? For starters, I have noticed the shallow to non-existent downward move in agricultural markets (grains & livestock) while crude oil and equities plummeted throughout the month of December. Sugar has also performed well when measured against other commodities. I recommended buying sugar calls on weakness in Tuesdays newsletter. There was a nice dip yesterday and it looks like this week sugar should close on a positive note.
I would also argue that the moves in crude, equities, and bonds were a bit excessive. You may wish to use the recent strength to sell 30-year bonds. I would think it likely for treasuries to grind lower over the next several months.
You can use weakness to buy hogs today. The long-term trend looks to be positive and we have seen a three week correction that may have ended last week.
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Bullish commodity rankings
1.Sugar - Hold long calls.
2.Lean Hogs - Buy call spreads.
3.Corn - Buy calls
3.Gold Hold long calls
Bearish commodity rankings
1.RBOB Gasoline Hold put spreads.
2.Cotton - Hold long puts.
3.30 Year Bonds - Buy put spreads.
4.Wheat - Hold long puts.
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