Sign in     Like us on Facebook Follow us on Twitter Watch us on YouTube

News and Blog

Join 5000 other sharemarket traders for regular blog updates!

Browse to a category

Blog Search


As you can see from the chart below this week took some of the fizz out of some of the star performaers in commodities markets.

Energy based commodities which to date had been among the hardest hit with talk being that the heavy involvement of speculators being to blame. The theory goes that the more specualtors there are within a market the more unstable and unsustainable it becomes. Such markets are ripe for quick and savage pullbacks, part of the evidence for this argument with regard to energy issues is this chart.

This looks at the price of crude overlaying the number of non commercial positions in the market – non commercial is taken as code for speculators. To be honest I am never fully convinced about such arguments since in many ways it is postdictive in nature.  These are rationalisations after the fact. The only facts we know about with certainty is that the market had gone up a lot and then come back less than a lot and if you look at any trend following system with a reasonable stop in place this pullback would not yet have caused you to take any action.

Markets go up, markets go down – the reasons for this are largely irrelevant.


Speak Your Mind


General Advice Warning

The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.