Futures (Cedar Falls, IA)

A monthly trade magazine that presents news, analysis and strategies to inform and educate traders in futures, options and derivatives markets. Provides analysis of global markets and information on price movement, volatility, and future trends. Articles

Articles from Vol. 41, No. 10, October

A Complementary Approach to Trading: Trading Systems Are Most Effective When Their Individual Components Work Together to Produce a Stronger, Rather Than Duplicative, Signal. the Whole Is Greater Than the Sum of Its Parts
Technical indicators are mathematical calculations based on a trading instrument's past and current price or volume activity. When used as part of a technical trading strategy, indicators can help traders identify unique opportunities in the markets...
Better Breakouts in the Electronic Age: The Opening-Range Breakout Effectively Is Defunct in Most Markets, but Creative Market Selection and Price References Can Bring This Old Favorite Back from the Brink
Most short-term breakout methodologies, such as the opening-range breakout, worked well until 2008, but then fell apart because of aspects of electronic trading. All is not lost, however. We may be able to identify a new breakout point, defined by...
Energy's Countdown to the Election: Traders and Analysts Look Ahead to the November Election to Discuss How Its Outcome May Affect the Currently Oversupplied Markets and the Geopolitical Risks That Have Been a Major Factor Driving Prices in Recent Years
Vulnerabilities in both political parties are seen by traders and analysts when it comes to debating the Nov. 6 election and how to trade it, but a surprising number of market participants are expecting little of importance to result in the energy...
Exploiting Crack Spreads with Options: The Crack Spread Fundamentally Affects Cash Flows for Energy Companies, Making It Natural to Ask If the Price of One Refined Product Can Be Used to Forecast the Other
Energy companies for which refining crude oil is a large part of their business are subject to variations in the crack spread: The difference between the cost per barrel of crude oil and the two major products of the refining, or cracking, process....
Global Trends Are Gold Standard for Metals
Only marginal changes resulting from the U.S. elections are expected to appear in base metal markets, which currently are being driven more by global trends, mainly in Europe and China, according to traders and analysts. But precious metals may move...
Going Backwards
August volume for CME Group compared to the same period last year was down by 40%. That's not a statistic that sits well with an industry that has grown, almost non-stop, for a few decades. And it certainly shines a harsh light on underlying doubts...
Hot New CTAs: Not Your Father's Option Traders: As If Launching a New Trading Business Isn't Hard Enough, This Year Emerging Managers Had to Deal with Failures at Two Major Retail Brokers. despite This, We Found Three Option Programs That Are Carving out a Unique Niche
This is the 23rd year Futures has profiled emerging commodity trading advisors (CTAs), and while every year is unique, we have seen a trend in recent years toward more short-term and option programs. This year we focus on three unique option programs....
In PFG Fraud, Everyone Loses-Except the Lawyers: The Fraud That Sank Retail Futures Broker PFGBest Torpedoed Hundreds of Introducing Brokers, Tens of Thousands of Customers and More Than a Century of Trust. Can the Retail Sector Survive without an Overhaul?
Eight months before Russell R. Wasendorf Sr. tried to kill himself by running a hose from his exhaust pipe into the passenger compartment of his car, he took delivery of a cache of silver coins from the New Zealand mint. They were licensed by Nickelodeon...
Question: How Can You Trade a "Too Close to Call" Election?
Answer: Execute a volatility play with the use of straddles and strangles Options premium consists of two components: Intrinsic value and time value. Intrinsic value is the in-the-money portion of the premium. For instance, with the gold exchange-traded...
Sentiment: Putting Trading into Context: The Technical Picture of the Market May Be Difficult to Understand at Times, but by Combining Sentiment and Cycle Analysis with an Open Mind It Typically Comes into Focus
Bull markets climb a wall of worry, but bears slide a slippery slope of hope. Every trader has heard these and other trading adages, but is there any truth behind them and, more important, how do we put them into practice to make money? Typically,...
Tom Crouch Loves Trading
Tommy Kent Crouch recalls that his first futures trade was in pork bellies and caused him to lose the down payment on the house for which he and his wife were saving. That was back in 1966 and Crouch calls it his "first lesson" in trading, but it was...
Trading and the Election
The November U.S. presidential election is upon us. As always in these elections, many markets will be affected by the outcome. But this time around, there are two underlying markets that should receive serious attention. They are gold and the Swiss...