The Month In Review

The month of May was an active one across many of the markets we trade.

S&P
Amid continued uncertainties, stock markets remained volatile. These uncertainties are due in part to trade uncertainties and increasing skepticism that the current ‘Bull Market’ (I put this in quotes because I believe we are no longer in a bull market, but that is a story for another day.) will continue. Over the past month the S&P June contract declined 6.65%.

US Treasury Bonds

Amid the uncertainty, investors are clearly seeking the security of the US Treasury market. US 30 year (June Contract) rose 4.63% in May.

Light Sweet Crude

Crude lost 14.95% (July 2019 contract) as initial supply concerns eventually gave-way to nervousness over trade uncertainties.

Agriculturals

Flooding in the US midwest has delayed planting and therefore created concerns about this years supply of Soybeans, Corn and Wheat. We have concentrated most of our trading on the Wheat market (July 2019 Contract) this month which rose 16.98%.

During the month of June we will continue to watch for opportunities in these markets as well as Gold which has been heating-up recently.

The Week Ahead

After a very active week trading the Agricultural markets last week, we are looking for opportunities to present them in the S&P and Crude Oil markets.

S&P June 2019 Contract
After a range suppression at the end of the week, as traders prepared to leave for the Memorial Day weekend, we are expecting recent news-driven volatility to resume this week. With this in mind we are looking for a move above 2870 to go Long and 2799 to go Short.
Light Crude July 2019 Contract
Crude is due for a move so we will be watching $61.30 to go Long and $57.25 to go Short.

Have a great week in the markets!

Crude Oil Shows Strength

Coming off of last week’s two day OPEC + Russia meeting where the decision was to pull 1.2 million barrels of oil daily from the markets, Light Sweet Crude has begun to show strength.  The proof of this agreement will however ‘be in the pudding’, as we wait to see if each of the parties involved, uphold their end of the agreement.

Over the past couple of weeks, Crude has tested the $50 level but failed to close below it.  Therefore from a trading standpoint we are looking for a breakdown below $50 or a meaningful push above the $55 level.