RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Daily Futures Trading Update

Futures Market Insight w/John Caruso – 12/04/2019

Posted 12/04/2019 10:07AM CT | John Caruso

It’s not a coincidence that trade anxieties get ironed out quickly! Yesterday the deal was falling apart and likely not going to happen until after the election, today negotiations are going very well. The very “timely” placed headlines are not a coincidence. This plays very well within the context of our model and Econ Scenario 3. The 10-yr yield swung from the low end to the top end of the range (1.70-1.85) in 24hrs! And it looks like its on its way back down with the uptick in the commodity re-flation trade!

S&P 500: bounced nearly perfectly off the low end of our range – coupled with the timely news on trade. This is a traders dream market! The VIX swung to nearly 18 yesterday and is now getting pancaked back under 15. 15 is and has been our bull/bear line for equities. Bullish equities below 15; Bearish Equities above 15.

Energy: blowing higher after the “shake-out” on LOW VOLUME. We consider 3 components, price, volatility, and volume when making our range calculations and ultimately our decisions on entries and exits. Look for a surprise at the OPEC meeting (5th – 7th) and the trade to be very “headline” driven. Also, Aramco IPOs tomorrow.  Coincidence on a bounce in Oil?  Doubtful.

Metals: pulling back some here. Gold signaled immediate-term overbought yesterday.  We’ll be patient and begin to rebuild our longs soon. Platinum is another commodity we’re looking at closely. The palladium vs. platinum ratio is now 2 to 1. That’s alarming, and extra alarming to auto manufactures of catalytic converters. Platinum looks to be in play headed into year end (this is one I won’t mind being a little early on).

My #1 and 2 indicators on U.S./China relations remains copper prices and the Shanghai Index and NOT the President’s Twitter account.

Feel free to reach out to John Caruso at jcaruso@rjofutures.com or 1-800-669-5354 if you’d like to get a 2 month free trial of our proprietary trade recommendations by email. 

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John Caruso

Senior Market Strategist
Follow John on Twitter @JCarusoRJO. John began his career at Wilshire Quinn Capital, a Wealth Management Firm based out of Los Angeles, California. Prior to becoming a broker he did some individual trading on his own, where he first began to study and interpret different market strategies and ideas. In 2006 John moved over to Lind-Waldock where he began to service clients as a professional broker. He joined RJO Futures in 2011.
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