Another week down in the trading books and an extended weekend for many of you! I often use these extended weekends to reflect upon my investment process and figure out how to improve. It seems that we are all students of the markets and the markets show no mercy when giving a grade. There are no grading curves like many of you saw in college. It is as simple as this: You start your investment or account with “X,” and it ended with “Y” balance. That is one way to grade yourself, and conversely, one can also grade the market they trade by its underlying performance.
I always finish my Friday afternoon by analyzing what markets performed the best over the past week, month, and quarter. That will give me an accurate picture of what asset classes I may be missing out on and what markets I might have been overstaying my welcome. With 2021 here, we are sending out a complimentary 2021 Futures Calendar & Reference Guide with a limited supply. The guide is your go-to resource for government & industry report dates, contract specifications, futures, and options expiration dates. *Available to U.S. residents only. You can request yours here: Blue Line Futures 2021 Pocket Calendar.
For instance, this week’s performance data shows Corn leads the charge up 7.2%, while Sugar up 5.32% is playing catch up to the last week’s rising energy prices, and Platinum trails up 1.42%. Earlier in the week, the USDA showed that Corn production, yield, and harvested acres all declined in 2020/21. Higher energy and Ethanol prices helped Sugar while the news that a new strain of Covid in South Africa could impact platinum production, resulting in higher prices.
Shifting to the markets you care about most, Dollar, Gold, silver, and treasuries all made large moves in one direction or another, but all in all, ending the week disappointingly flat.
So you might be asking yourself, what should we be preparing for next?
I would expect that the new administration’s progressive policies are likely to continue to boost inflation and commodity prices into the next two quarters of 2021. Remember that commodity prices generally travel with…
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