Quite a busy day here as we continue to assemble the upcoming Tradrr launch. First, my thanks to all who made our initial entry into the “live” world a success. Apologies to all who are complaining about how boring the “markets” are. Ever think you are looking at the wrong markets?
Sugar is anything but boring. Sure, trading patterns like we’re seeing now don’t often happen but when they do history proves once again that it repeats. Sure it shows up in the technicals but there’s an underlying reason for its current movements, supply and demand.
Sugar Daily
Sugar Hourly
Futures rely upon supply and demand. When supply decreases prices increase. When demand increases prices increase. Events in the real world affect price. Sugar demand remains strong but there are significant questions production wise worldwide on the supply side. Technicals reflect that.
Extrapolate these supply and demand conditions to the “markets” you trade. Getting 5% in 3-month treasuries has a tendency to reduce the demand for equities especially when interest rates and inflation are high coupled with uncertainty to the exclusion of earnings growth being muted. What do you expect? As mentioned in our Sunday show the open interest in S&P 500s is decreasing; demand is decreasing; the interest trading in this future is declining. It should be boring.
Hope you enjoyed this post. I’m just a young 68 years old; my Dad became a broker when I was 13. It’s time for me to ‘give back’ to all of you what’s in my head. It’s not always pretty but it’s based on history . . . and history, unchecked, repeats itself.
Everyone learns at their own pace. If you pick everything up the first time through, great but if not email me at dzimmer@substack.com so we can further help.
Give the Archies their due . . . 1969 was a very good year.