RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Stocks- Since the beginning half of June the Russell 2000 (small caps) has pared back 10% of its more than 40% gains from the March 2020 lows. What’s most disconcerting to me (and should be for you as well) is that Russell never regained its 6-month bullish trend in the time of that historic rally. Yes we were bullish “trade” – meaning 3 weeks+, but all the while remained bearish “trend” – 6 months +. In its simplest form, what I’m trying to convey is the dominant trend remained and is still bearish. With the recent breakdown in the trade, and dominant trend remaining bearish in the Russell 2000 – we think the odds are rising that the market crashes for the 2nd time in 2020. Side note: Covid – 19 cases are at record highs here in the U.S.

Volatility- True bull markets in U.S. Stocks don’t exist with the VIX trading > 30.00. 

Gold- High conviction long when we see pull-backs to the low end of our range (1735 – 1745). We’re embarking on the next rising phase in Gold very soon. 1835 upside target.

Currencies: Dollar bouncing today, we’ll be ready for the next position on the sell side, but not yet. It may stay range bound before a big break down later in the summer – we’re estimating a breakdown to at least 88.00 and perhaps worse as the Federal Reserve devalues the purchasing power of America. 

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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. John made his move to the commodity industry at the end of 2005, and began his path at Lind Waldock, at the time the largest retail brokerage division worldwide. John did his undergraduate work at Robert Morris University in Pennsylvania from 1999-2003, where he was a 4 year varsity basketball letterman.  A self-professed “Macro Trader”, John uses a multi-factor fundamental and “quantamental” trading model in distinguishing market cycles based upon the accelerations or decelerations of growth and inflation metrics. His technical and quantitative approach is heavily reliant upon trend and market range analysis via a custom built standard deviation system in helping him make probability-based market decisions. John is an avid reader of all things pertaining to finance, and behavioral economics. Click here to sign-up for John Caruso's Trading Coach Insights. Daily information and insight on all futures marketsin ranging from metals to equities.
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