HEDLines – Archive

Ten year note futures made a bottom extension yesterday, a day after the same signal in five-year notes. This changes our view from ‘neutral’ to ‘short-term buy’ so we now advise buying some part of the US treasury curve. As…

Gold futures extended on Friday and should now be bought. Our model portfolio has the maximum number of (3) commodity positions already, so we cannot take this trade but we maybe able to do so tomorrow as all those positions…

The US Dollar has recently risen, presumably because a rate rise in December is now considered more likely. This rate rise has been more anticipated by markets than second coming, so we are sceptical (see the 15th September edition for…

Cotton futures made a daily-scale compression and dropped out of the bottom of it on Wednesday. This means that a new down-trend has probably begun and that it is a good idea to sell short. Our portfolio can’t take any…

Equity markets are stuck in tight sideways trading ranges in Europe. There is a slightly rising version of the same tight range in the US and a slightly declining range in the far East. These are the kind of conditions…

The various US government note and bond contracts have all compressed lately and fallen through those compressions today. Here are the price charts: There is some support around these levels from the older compressions also shown on these charts and…

Today is the tenth day of the ‘short sugar’ and ‘short copper’ recommendations from the October 13th edition. We won’t keep the sugar as the top extension has only led to a pause – there is no sign of a…

The rally in stock markets has now produced a small series of top extensions in two US indices and the German DAX: These extensions are at a daily-scale and come approximately at price levels where we expect resistance from older…

There is a proxy war heating up in Syria, like those seen often in the Cold War. In those far-off times some unfortunate country, usually with a warm climate would find itself chosen as a battleground for a contest between…

Yesterday we advised covering all equity shorts and reversing into long positions as a short-term ‘tactical’ trade. That has worked well and we would now sell those long positions and look for places to re-short. The background situation remains bearish…