RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Bull and Bear Market

Our quants nailed Q3 GDP this morning – expecting 3.5% vs the wall streets estimates of 3.3%.  Even more reason to believe we’re on the right track for this rate of change slowdown (or less good) in growth and inflation moving forward.  The smartest trader of them all has already began to sniff this out – The Market itself.  This GDP reading was up 17bps and +3.04% y/y – the fastest pace of growth in 3yrs and will likely conclude this historic run in growth at 9 consecutive quarters! 

The USD is now immediate term overbought, and we’ll likely see a “hiccup” in the USD from here – still very much bullish trend – but a very crowded trade right here.  This could be boon for Gold prices in the near-term, but I don’t want to get too far out in front as next weeks Unemployment data is likely to express more wage growth.  Wage growth remains a classic late or peak cycle indicator as well. 

Don’t confuse our near-term “bearishness” with doom and gloom for the US economy.  We’re not calling for recession by any stretch, we’re simply calling for the data in Q4 thru Q1 2019 to look less attractive when comp’d y/y. 

Good luck out there and as always, reach out for any further commentary. 

 

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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