HEDLines – Archive

Both London (1st chart) and New York (2nd chart) sugar futures made top extensions yesterday. Sugar is mainly produced in vertically integrated agribusinesses that own the production process throughout, as is common in many types of crop.  This means that…

We have been bearish about copper prices for three main reasons: The lag between higher prices and the increase in supply they encourage is long and the processes involved are hard to stop. This leads to cyclicality – new supply emerges whether…

Stocks suddenly strengthened this week and this has pushed prices above many of the compressions that have been forming. Some examples, firstly in the FTSE, where it was reported that fund managers are quite underweight, so a rally was unsurprising:…

Both London and New York cocoa futures made bottom extensions yesterday, at a daily scale: This comes after a 10% drop in recent weeks and so it is worth buying some here for a bounce.  

Wheat has made a couple of daily-scale compressions lately and prices broke upward from these levels yesterday. We would buy some now, as this appears to be that ‘clear break’ that has been lacking in the financial markets. There is…

As reported often here, we have been seeing multiple compression signals in various financial markets and some commodities too. It is worth repeating that these are times of great danger for traders as compressions signal a complete lack of consensus…

There have been some fresh compressions in stocks since the last edition on the same subject.  These shown here are all US examples but they tell the same story – a market that is poised to move (we think upward)…

There were many new compression signals yesterday in stock and bond markets, at a daily scale. This is no surprise after last week’s new weekly-scale Nasdaq compression that we reported yesterday but it serves to illustrate that there is a…

Equity prices fell late last week as US indices bumped up against previous highs in the 18 month-long trading range and stalled. As this sideways price movement continues in America there is  a well-established shallow downtrend in the Eurostoxx index…

We have been advising that the recent rallies in grains would stall and sharp reversals occurred in the last two days of last week. There were also weekly-scale top extensions in soya beans and soya meal, which argue that the…