Just Another Day
In Many Ways But Not All
Most of our ancient anscestors had no idea what a derivative was but they sure knew how to make sacrifices during solar eclipses. I’m sure there’s a few of them around in today’s world but face it, they still don’t understand derivatives.
Just What Are Derivatives
A derivative’s a contract whose value is derived from the performance of underlying assets, indices or rates. Unlike traditional investments, stocks or bonds, derivatives do not represent actual ownership of an asset. Instead, they offer direct exposure to the price movements in the value of the asset. This characteristic lends derivatives their versatility, allowing investors to profit from both rising and falling markets.
So what’s happening in the metals markets? Gold has been active. Last night it hit a low point after opening then ran to daily highs. What that means for most is that gold is getting a bit exhausted but never fear, the “poor man’s” metals are headed higher.
On LinkedIn I’ve posted a couple thoughts, the first one simply identifying the “ups and downs” overnight. I hope you were watching. Then earlier this morning I posted the following chart that exhibits a price where traders might place stops.
Remember, I’m here to educate you. I’m not always right but I am always consistent. If I were you I’d sign up on LinkedIn. Sure, I’ll post things here but most of my calls are on LinkedIn simply because it’s faster.
So What About “Poor Man” Metals
Gold is important but so is Silver and Copper. The best way to illustrate this is with a few charts I follow. Copper has “sprung” just like it usually does in “spring”. Silver is ripe to run as well and technically speaking, it’s on fire. What do you think?
Nothing goes straight up or straight down. I’m a fundamentalist first and inventories of copper are unreasonably low. Coupled with a technical reversal I started buying the 2024 May futures contracts at and around $3.85.I was stopped out of 1/2 of the original position on a trailing stop around $4.10. When copper held the $4.00 level I loaded up on the 2024 May Copper $4,20 call options. The harder I work the luckier I get and I got lucky on this one.
It’s been like clockwork but trust me, it doesn’t always happen that way. Those of you in the “1-on-1” tutorials watched as I traded. At The Ticker we knoew that is going to grow as we complete our Library & Webinar series. Everything has taken longer than it should but face it folks, what doesn’t especially if it’s beneficial. I’m going to shoot for a June completion date. In the interim we’re offering an introductory package on The Ticker for $247 so look and sign up. Like everyone else you’ll be glad you did.
How About That Total Eclipse
Anthony Newley sang “Once In A Lifetime” years ago in “Stop The World I Want To Get Off”. That describes how I felt today, mesmerizing to say the least. The “eclipse” literally went directly over our backyard. I knew we should have leased the house out on Vrbo or AirBnB but alas, we didn’t. A couple of our neighbors did but quite frankly I’m glad we didn’t.
It went dark at 1:37 PM CDT and I mean “black”. The temperature dropped, a few of the neighborhood dogs were barking, solar yard lamps turned on, it was “fascinating”. It’s something I’ve always wanted to see. I’ve witnessed the Northern Light, watched a couple Orca whales in British Columbia straits and I’ve seen icebergs calving but not since the middle 1960s have I seen something, anything like this.
It’s a wonderful world we are in, just a tiny part of the universe we live in where each of us can come together in peace and just watch. Too bad we can’t do more of this but that’s our own fault. There’s so much more special in this world than simply making a little more money but face it folks, it’s priceless.
Everybody has a favorite movie. Mine are Stanley Kubrick films but when it comes to comedy, after Mel Brooks I love it when “Caddy Shack” hits the big screen. As we sat and waited to watch the eclipse the first question we faced was whether clouds would obscure it. Just like this scene from Caddy Shack, the “good lord wouldn’t ruin” one of the best days of my life. We not only were able to see the eclipse, we got to see totality. It all went dark, it was fascinating. It’s something I haven’t seen since the 1960s. Face it, we were lucky and we hope where you are, you were lucky too.