This past week we saw the S&P tread water moving up only .54%. We continue to see a negative bias in this market as momentum favors downward moves. This week we’ll be watching for the development of a downward trade.
Crude began a move earlier in the week prompted by tanker attacks in the Gulf of Oman, but then quickly retreated as tensions eased and continued concerns regarding the health of the world economy lingered. We had entered a trade on this move but later exited at breakeven. We will continue to monitor this market for further moves amid Middle East tensions.
The agricultural markets remained volatile this week, amid spring planting concerns. Soybeans moved up 4.59% while Wheat gained 6.39%. Depicted above is the move in Soybeans this week, during which we were able to capture an 8% profit. We will continue to monitor the agricultural markets for potential trades during this volatile planting season.
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.
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.
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.