Knowing More About Buying Commodity Options

One of the trading activities that people can really earn from is buying commodity options. However, they have to know something more about it before they venture into this kind of trading. Although there are underlying commodities that are used for the commodities contract which can be transformed into futures options by traders. People also have to take note that options are traded at various prices within a given month.

Just like any other markets, transactions are based on the predictions made on price movements. When traders expect prices to increase over a certain period of time, they buy a call option. In case they expect it to decrease on the other hand, then they should opt for a put option. One of the most important points to think about is the expiration date. The lesser time that the traders have in their contracts indicates higher amount of risk that they are taking. They tend to lose at the end of their trading if they are not able to buy the correct option.

Another consideration that people have to take note of when buying commodity options is the decreasing value as each day that passes by. Traders can gain more if they have ample time to wait for big movements to occur in the market. They also have to study the various strike prices from which they can decide which one will provide them profit based on the prevailing market trends and conditions. These strike prices include the following: in the money option, at the money option and out of the money option.

People who are first time buyers of commodity options can contemplate on the in the money option. This has a higher price than the strike price and people may still earn even in there are no huge price movements in the market. Those who are little more experienced may work on at the money option. They may be able to take advantage of the leverage by getting as much contracts because the amount that they are paying for represents only a fraction of the value of the underlying assets. People may gain when favorable price movements occur in the market due to the large number of contracts entered into.

The last type may only be used by the experts as most of the time beginner traders lose when they take out of the money option. The price is lower than the strike price but the time is not sufficient not unless there is a sudden favorable change. However, most of the time, traders lose as their options expire on a definite time.

Sandy's Effect on the Cattle Market   

Commodity and Stock Markets Saved As High Frequency Trading Deemed Legal - Short Story

It was a late Friday afternoon, after 19-weeks of utter catastrophe in the stock and commodity markets, as the SEC and Justice department's new rule against high frequency trading had gone into full effect. The authorities thought that the stair-step approach to quelling this technique would suffice, but it hadn't, and now with all high frequency trades stopped which had ultimately accounted for nearly 65% of the commodity market, 75% of the carbon trading market, and 58% of the stock market trades, the volume was so far down, nothing was happening - 10 trillion dollars had left the stock market alone since the rule was announced.

It was June 10, 2016 when the final ruling came in from the Supreme Court. The court reasoned that since the corporations doing the high-frequency trading are considered legal citizens, they are allowed to trade as fast as they want or are able, just as any normal citizen would, if they could. Although the vote was very close, it appeared that once again the Supreme Court was playing politics, and doing what they thought was best for the country. After all if they didn't get the trading volume back up, the federal government could go bankrupt, as so many citizens wouldn't have enough retirement after the severe losses. With the budget pull-back in 2013, social services were already becoming a bare-bones affair.

There were also a multitude of farmers that had filed bankruptcy unable to make good on their commodity contracts, and it was causing food shortages, exacerbating commodity markets, and people were feeling the pain at the grocery store, people were getting angry, and there were periodic riots. Many said that the Supreme Court did the wrong thing, other political pundits and economic analysts said they did the only thing they could do to save the country.

One legal constitutional scholar reminded TV audiences that it wasn't the Supreme Court's job to save the country from itself, it was their job to interpret the Constitution, and what they did was bad for the Constitution all to help the political leadership, Chicago, and Wall Street from losing control. What will happen next everyone wondered and pondered? It was thought that the volume would come back up, and markets would recover, but some question this.

Their view is that if high frequency traders had the inside track, and if the game was rigged, fewer investors would put their money back into the stock market, and the high-frequency traders would continue to do mass market manipulation causing huge swings of volatility, making it almost impossible for a viable and sustainable distribution of food and materials to markets, or anyone using the stock market for investment, as it would be more like an insane never-ending-high-velocity online gaming affair. Tomorrow is June 11, 2016, the whole world has changed, and we won't know how much until the markets open on Monday.

Sandy's Effect on the Cattle Market   

Follow the Market Makers - Not the Chasers

This year's corn market provides a textbook example of the accumulation and distribution of positions throughout a market's trend as well as identifying the strengths and weaknesses of the market's primary participants. We'll use empirical data to reveal why the Commodity Index Funds have little impact on the markets major moves as well as which trading group does move the market and finally, who comes up with the short straw when the market turns.

The corn futures market began the year with talk of steady to lower prices throughout the year. We commented ourselves in early April that this was going to be a, "Buy beans, sell corn" kind of year. Our expectations weren't based on rocket science. The early planting intentions called for record acreage and the beautiful spring weather accommodated the seeding process. These factors kept the price of corn in check between $5.50 and $6.50 per bushel. This also matched the USDA's crop insurance price threshold of $5.68 per bushel for the 2012 marketing year.

The corn market has two strong seasonal periods. The first is planting time. There is always fear that the crop won't get in the ground and therefore, limit the year's crop. Small speculators and end line users of corn tend to bid up early prices. Speculators hope that this the drought year and they finally hit a home run while end line users hope to lock in the year's input prices in the production of cereals and chips. The early seasonal attempts to rally were cut short by commercial traders hedging their crop above $6.25 while hoping to lock in trend line yields around 160 bushels per acre. This would've generated about $1,000 per acre.

The mild spring finally flushed out the small speculators as prices made new lows for the year by the end of May, around $5.50 per bushel. The commercial hedgers then began to cover the hedge positions they had placed above $6.35 per bushel. This represented a cash gain of more than 12% to the supply side commercial traders. The decline brought prices down to the low end of the year's forecast. At this point aggregate global demand for 2012 put a fundamental floor under prices.

Corn buying from commercial producers and Commodity Index Funds took place in waves. This also represents the low point for small speculator positions as they had been forced out of the market on the April-May decline.

The June 12th USDA Supply and Demand Report was the first evidence that spring's early plantings were wilting in the heat of May and June. The market pushed to new highs by June 26th. The rally provided a definite shift in mentality. Traders were now in the classic, "accumulation phase" of the market. This is characterized by rising open interest and new highs in price. This shows that the market is welcoming new participants who are happy to enter - even at all time high prices.

Commodity Index Fund position changes are tied very closely to the accumulation and distribution processes of the market. Commodity Index Funds are forced to maintain a percentage allocation stated in their prospectus. Therefore, as the market climbs, they are forced to buy more while they are forced to sell as the market declines. The net result is that Commodity Index Funds will raise the floor price of a commodity as they venture into a new market and establish their position. However, once their position is established, their position management only affects the speed with which the market moves, not the final prices. Thus, Commodity Index Funds may only be guilty of increasing the volatility of a market as they add or, shed positions accordingly. Throughout this summer, the number of contracts they've held has remained within 4% of their starting point. Their value, on the other hand has fluctuated by more than 20% as the market has rallied.

Finally, the market has stabilized between $7.75 and $8.40 per bushel. The decline in volatility over the last six weeks has brought the retail traders back to the game. Just like clockwork, we can see that the small traders are purchasing their contracts from the commercial traders. Commercial traders have shed about 27% of their total position over the last month while small speculators have increased their positions by 25.5%. This is the classic distribution pattern as those who've ridden the trend take profits by selling their positions out to the small speculators. The small speculators will be left holding the hot potato and will be burnt at the top of this market just like they were at the bottom in April and May.

The likely outcome is that the corn market will fall through the support it has built up around $7.75. This will likely trigger the exit for most small speculators. The fall may be swift as Commodity Index Funds shed contracts to maintain their portfolio balance. Finally, the commercial traders will be waiting as ready buyers who will now cover the short positions they've initiated over the last month between $7.75 and $8.40 per bushel.

Sandy's Effect on the Cattle Market   

Online Commodity Trading

People all over the world today can now participate in online commodity trading. Unlike the traditional trading platforms where they have to be present in authorized exchanges, traders can now simply do their activities wherever they are as long as they get connected through the internet. The tasks that traders have to perform are more convenient and easy as well. They also have the advantage of seeing the results right away. Traders today can do this through online brokers who earn by the fees that they have to pay as they use their online commodity trading facilities.

Although online trading may be very convenient, people still have to be careful so that they do not lose their money in the process. They have to learn how the trading platforms work and they should get the opportunity to give it a try especially if they are allowed to work on practice accounts first. Their brokers may provide them with all the things that they need such as charts, quotes as well as technical analysis and current market trend information. Even those who are new to the trading business may easily learn as everything is practically provided by their brokers though they have to learn how to make sound decisions about their trading moves.

People may also hire professionals to manage their trading accounts for them so they do not have to worry about anything. But those who would like to do it on their own will have to find the best online brokers whom they can trust. They have to find brokers that charge lower commission rates on their trading activities. Those who would like to start trading but may not have a big capital to start with can opt for online commodity trading instead. People can also learn how to make use of tools in analyzing the market so that they can earn more profit in the process.

There are other options that they can look into such as trading options or trading futures. These will allow them to maximize profit through the use of spreads and other strategies like leveraging. New traders though have to be aware that they do not over trade given the small capital that they need and the lower commission fees that they have to pay for. They also have to take note that once they are taken over by greed or by the intense need to recover from losses, they may end up losing more in the end.

Sandy's Effect on the Cattle Market   

What Is Direct Market Access in Spread Betting?

The approach and access of most traders nowadays are easier, more convenient and open than what it has been long time ago. This is because there are already so many financial venues and platforms nowadays that can offer opportunities and possibilities for different financial markets in an instant manner, which is non-existent, even in the past 20 years. Aside from that, the growth of the retail financial investment platform has also been incredible in the past years, through the help of various pioneering financial instruments like the contracts-for-difference or CFD.

Among the biggest and most innovative developments in the field of CFD trading is the growth of direct market access or DMA. This allows traders to put their trading decisions personally, regardless of the size and level of the trade. In other words, as its name suggests, DMA is a platform that allows investors and traders to directly participate and access the market.

The usual and conventional financial trading takes place by placing a position through a broker. This relationship and way of trading through a broker is a contract with two (2) parties, which isolates the markets first. Of course, the value of the position still depends on what will happen to the market. However, the contract is primarily between the trader and the broker and does not involve the movements in the market yet. Aside from that, traders do not get to touch the market position at all. This is because, by proxy, the broker is the one who has the direct contact and involvement to the market.

However, with DMA, traders can do it on their own, monitor the developments of the market on their own, as well as put trading positions on their own. Well, this is because with this innovative platform, they can already access their positions through the use of the internet, without necessitating for the trader to go to the stock exchange market place or other platforms, just to make a position on their trade.

With the foregoing, the advantage of DMA to CFD trading is not just the accessibility of the market. This is because aside from that, there is something else that really helps traders in making their positions. One good thing here is the transparency of the price, if traders will compare the price from the DMA to the quote of the broker, there will surely be a variance. Well, this is the good thing about being open to the market in a direct manner. Consequently, this allows traders to buy or even sell this instrument in the optimal price in the market. This is way better than accepting prices of brokers that are usually higher and clipped. Hence, traders can really save money from this platform while having the chance to earn.

Sandy's Effect on the Cattle Market   

Peak Silver Redux

As prices at the pump gradually move back up, one finds no shortage of people calling for new financial regulations.Frequently blamed on speculators, higher gasoline prices are - as some politicians say - the result of lax laws regulating the financial system.

Nevertheless, can it really be only speculators that are driving up the price of oil? Surely, the petroleum market is deeper than that.

Without question, those with very deep pockets can drive up the price of just about any commodity, but typically only for a very short amount of time. Unless of course they have access to a virtually unlimited supply of paper money.

Monetary Stimulus

Today, monetary stimulus implemented by the Federal Reserve is transmitted primarily through incentivizing risk-taking and leveraging in the securities, derivatives and other risk asset markets.

Nevertheless, as Doug Noland recently put it,

"Traditionally, central bank stimulus would entail adding reserves into the banking system to effectively reduce the cost of funds, thereby incentivizing additional bank lending.

The U.S. financial authorities now have about 20 years of experience supporting the thesis that a dangerously powerful interplay exists between activist central banking, marketable debt and financial speculation.

Yet the Fed makes quite sure that its analysis avoids addressing the associated risks of its ever-increasing role in manipulating the pricing and trading dynamics of an ever-expanding quantity of securities, derivatives and market speculation".

Oil Versus Silver

Once past the stag flationary 1970's, oil prices remained relatively reasonable all the way up until the 2000's. Throughout the 1990's, the average American family enjoyed driving their minivans all around town with the price of gasoline fluctuating no higher than $0.80 a gallon.

Perhaps they are starting to wonder why those days of moderate gas prices now seem to be long gone. Why will gasoline never come back to $0.80 a gallon?Because the cheap oil is gone. Potential silver investors need to understand that the cheap silver will soon also be gone.

Throughout recent history, governments have subsidized energy consumption and production, so people consumed too much because it was kept too cheap. Now that all the easily found oil has been brought to the surface, the only oil remaining is harder to find and apparently considerably more expensive to produce as well.

Investors might wonder if the same situation may exist for silver. The widespread and expanding use of silver in electronics will be costly to recycle.

Also, an informal survey of dealers and buyers indicated that 40 ounces is the average amount of silverware held by those households who still possess it, although it remains difficult to assess how much of this source of silver was recycled in the 70's and early 80's. Nevertheless, compared to the previous generation, baby boomers seem much less likely to own real silverware.

Furthermore, having had its price manipulated by large banking interests using the futures markets, physical silver remained far too cheap throughout the 1990's and even into the early 2000's.

As the second decade of this new millennium begins an era where people are more dependent on electronics than at any other time in history, perhaps this will also be the ten years that lead silver to a new price boom analogous to oil's recent historical rise.

Basically, this demonstrates the very obvious problem involved with subsidizing the use of any valuable commodity -either directly or indirectly - that remains in finite supply.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

Sandy's Effect on the Cattle Market   

Saint-EMilion's Reclassification of Pavie and Angelus Turns the Bordeaux Big 8 Into the Big 10

Having spent a year and a half revising the Saint-Emilion appellation of Bordeaux, the INAO, or Institut National des Appellations d'Origine, have finally announced their new classification. For serious wine investors, the most interesting aspect of this re-classification has been the addition of Chateau Pavie alongside Chateau Angelus into the upper echelons of Saint- amilion. Previously only including Chateau Cheval Blanc and Chateau Ausone, these two wines are now share the distinction of a Premier grand cru classe. In a statement to the press, the INAO said their "consistency in quality and their quest for excellence" has earned them this accolade. Judged by price and reputation, the viticulture of these wines has improved immensely.

Robert Parker, Jr., has claimed that the Chateau Pavie 2000 is "one of the most monumental wines Bordeaux has ever produced." In fact since it changed hands in 1998, ten vintages have been awarded above 95 Parker Points, which anyone can argue is one of the best efforts of any Chateau since the turn of the century. Much of this can be attributed to the expertise of owner Gerald Perse, who has created a windfall by purchasing Pavie for $30 million, now valued by Liv-Ex at over $210 million, a very similar value to that of other classe newcomer Chateau Angelus.

Having been omitted from the 1855 classification of Bordeaux by the merchants at the time, it could be argued the right bank and especially Saint-Emilion has been one of the most overlooked wine-producing areas in the world. The values of right bank wines in the past have not been as uniform as those of the left bank, however since Perse has been at the helm of Pavie, and perhaps slightly longer for Chateau Angelus, they have produced vintages of consistent quality that have earned them the reputation - and re-classification - they deserve. However both the top-tiered newcomers have a much smaller price tag, surely an alluring prospect for wine investors and collectors alike who might find them both much more approachable.

In layman's terms, the 2011 market value of the well-established Ausone's and Cheval Blanc's were between four and eight times greater than the values of Pavie and Angelus, according to the London International Vintner's Exchange. This means that wines that are all in the same class of appellation have a huge disparity in monetary value, which some investors see as incredible opportunity for capital growth. Although their reputation may not be as powerful as their left bank counterparts, classe Saint-Emilion wines have been considered to be on par with the First Growth wines as part of the Big 8. Will these two newcomers join their exclusive ranks and force us to adopt the term Big 10? Only time will tell!

Sandy's Effect on the Cattle Market   

Iranian Sanctions Do More Harm Than Good

The Iranian petroleum industry has been crippled by the economic sanctions we have imposed on Iran along with the European Union and other countries in July. Iran is exporting less than 1 million barrels per day and that's a 20-year low. This knocks them from third place on the global exports list down towards India and Brazil at 23rd. It also makes for good press and sound bites by the President on September 11th. Unfortunately, his actions on this embargo are actually separating us from global trade with the very partners we need to pull our economy out of the doldrums. Furthermore, it is galvanizing the Iranian citizens' resolve against us.

The restrictions the U.S. has placed on the Iranian banking system has forced Iran to conduct business in the local currency of its export destination targets. This has created new insurance of shipments as well as leasing or, ownership of the oil tankers themselves. Previously, most of this business was done in U.S. Dollars. Now, we see countries like India, China and Japan trading rice, medical supplies and steel for Iranian oil and conducting this business in the destination countries' local currencies, the Rupee, Yuan and Yen.

The economies of India and China have slowed but they are still growing and continue to hold the greatest potential for future growth. Growth requires petroleum and the relationship they are forging with Iran to meet their needs is problematic to say the least. These countries are using the same tactics that Russia used in the Cuban Missile Crisis to facilitate good will among a trapped nation by providing economic and human relief from their perceived oppressors. This is also exactly what we did during the Berlin airlift immediately following World War Two. The strategy continues to be replicated because it works.

The countries that are continuing to do business with Iran may not be entirely altruistic in their trade of base human needs for oil. The banking restrictions the U.S. has put into effect along with the E.U. oil embargo has caused Iran's currency, the Rial to plummet. Officially, the Iranian Rial is fixed at 12,259 Rials per U.S. Dollar. Unofficially, the real exchange rate has fallen to 26,000 Rials per U.S. Dollar. The devaluation of their currency provides them with a smaller return on the oil they trade with their partners but more importantly it creates a spiral of misery for Iranian citizens.

Iranian citizens find that their expenses have more than doubled. To put this in perspective, if $1 bought a loaf of bread in June, it now costs $2.12. Your daily expenses are now twice as much as they were two months ago and your personal employment outlook is bleak, at best. The Iranian citizen unable to provide for his family will buy right into the governmentally censored media and blame his child's hunger on America and the European Union. That same citizen will be more than grateful for the bag of rice labeled in Hindi.

Iran's supreme leader, Ayatollah Khameni has vowed to form, "an economy of resistance." Therefore, President Ahmadinejad will continue to work with the oil industry to ensure that enough is sold to keep the economy moving while simultaneously ensuring that the average Iranian citizen remains miserable enough to despise us. Iran is the 18th largest global economy with plenty of reserves to plod their way through these sanctions. Therefore, the leaders can afford to keep their citizens miserable while still providing enough nourishment to make them strong enough to fight. We will continue to be held up as the scapegoat for their misery as long as these restrictions are in place. This strengthens the cultural divide between east and west and separates us from the, "understanding countries" like India, China and Japan.

Economically, the United States can't afford an isolationist policy that restricts trade with some of the fastest growing countries. The cause may be the believed infraction of the Non-Proliferation of Nuclear Weapons Treaty but the effect will be the loss of international trade and good will. Iran has been growing as the sole mega-power within their geographical area, in large part thanks to our actions in Iraq and Afghanistan. Iran will not witness an Arab spring. Perhaps, we should question their desire to pull the trigger on a nuclear winter.

Sandy's Effect on the Cattle Market   

How to Be Consistently Profitable in The Forex Trading

The possibilities in Forex are virtually unlimited. Through study, hard work, and perseverance, many people have made significant sums through the foreign exchange market. During the learning process, new traders can greatly benefit from guidance provided by seasoned traders. This article teaches some of the ins and outs of foreign exchange trading through the useful tips below.

Trading on Foreign Exchange means you need to check your greed at the door. Only trade in areas that you truly know about. Before you leap into the market, be sure you fully understand it. As a beginner, take things slow and make guarded judgements to guarantee success.

Set a timeline for the how long you plan on involving yourself with foreign exchange. This will help you create a good plan. If you are in it for the long haul, pay particular attention to mastering the tricks of the trade. Keeping a reference list may help you. You can thoroughly learn one standard practice a month. This way you become a rock solid investor and trader with impeccable habits and discipline that will pay off over the years.

Foreign Exchange is not operated from a central market, and it is important to keep that in mind. No natural disasters can completely destroy the market. Don't panic and sell all that you have if something goes wrong. All major events have to possibility of affecting the Foreign Exchange market, however this does not mean that the currency pairs that you trade will be affected.

Make sure to practice trading and research foreign exchange before participating. The best way to gain initial risk-free trading experience is through a demo platform.

If you are not ready to commit to a long-term plan and do not have financial security right now, trading against the foreign exchange market is not going to be a good option for you. Beginners should completely avoid trading against market trends, and experienced foreign exchange traders should be very cautious about doing so since it usually ends badly.

There are multiple sources for information about foreign currency exchange trading available on-line, night or day. You are better supplied for the experience when you definitively know the ropes. Read for awhile, then log in to a forum where you can discuss what you have read. There you may get guidance from people with expertise in Foreign Exchange.

Avoid moving stop losses, since you could lose more. Stay with your original plan, and success will find you.

To determine average gains and losses in a particular market, consult the relative strength index. This will present you with the information you need to make a decision. You will want to reconsider getting into a market if you find out that most traders find it unprofitable.

As mentioned in the beginning of this article, information and advice from experienced traders is important for new and less experienced traders. The tips shown here are a great starting point to getting the most out of trading in the Forex market. There are endless opportunities to make money if you are willing to put in the work.

Sandy's Effect on the Cattle Market   

Energy Fork in the Road

One economic topic that isn't getting the attention it deserves is the energy policy. The drought of 2012 along with the expiration of subsidies paid to ethanol blenders will make it nearly impossible to reach the Renewable Fuels Standards (RFS) as early as next year. The standards that were put in place to increase this country's energy independence were based on protectionist interests and were only viable as long as ethanol produced by the U.S. was subsidized while Brazilian ethanol was simultaneously taxed.

The difference between U.S. ethanol and Brazilian ethanol is the source of their primary inputs. We use corn, which is slower to grow, harder to use and more expensive than the cane sugar Brazil uses as the feedstock for their ethanol production. It will be very interesting to hear how the Presidential candidates debate their renewable energy policies, especially as 40% of our primary crop is diverted from food to energy production. This year's drought has created a political collision course between food costs and the Renewable Fuels Mandate as well as the Energy Independence and Security Act.

The corn market is about as American as you can get. The U.S. produces as much corn as the next two largest producers, China and Brazil, combined. Unfortunately, production will fall nearly 15% short of 2011's 314 million tons. The current Renewable Fuels Mandate allotted 40% of last year's corn to produce 13.95 billion gallons of renewable fuel and 2012 will require an additional 8% increase over 2011. This brings total renewable fuel sources to 15.2 billion gallons on total consumption of 134 billion gallons in 2012.

The drought has pushed corn prices to an all time high of $8.43 per bushel. While the market is now 14% lower at $7.25, the rally has been more than enough to shatter the profit margins of ethanol blenders. The combination of expiring refining subsidies along with higher input costs is leading to the shut down of major ethanol blenders. This raises the capital market question of who's going to be responsible for meeting the aforementioned production targets? Ethanol distillers are losing more than $.40 per gallon at the current prices.

The idea of diverting 4.7 billion bushels of an estimated 11 billion bushels in total U.S. production towards an inferior yet, more expensive product seems silly in the face of rising global food prices. This is exactly what would be required to happen to meet next year's Mandate. Furthermore, reaching next year's goals using the current 10% ethanol blend is nearly impossible given the current mix of gasoline and diesel motors. Diesel biofuels and biodiesels are given a 50% bonus in RFS for their lower greenhouse gas emissions as measured by the EPA. The friction this creates in meeting the Renewable Fuels Mandate is called the, "blend wall." The blend wall is the physical limitation of production and blending facilities based on the most common 10% ethanol blend. The mandate calls for 13.8 billion gallons, 10% of expected 2013 US consumption. However, current facilities, assuming they were all open and operating at full capacity, can only produce 13.3 billion gallons of ethanol.

The candidates will have to address the subsidies that farmers and blenders are paid as well as their plan on handling imports. These are most likely, the easy issues to address. Developing a complete energy plan will also include a discussion on the much more economically friendly topic of our vast natural gas reserves which have the capacity to place us on a much more sustainable path.

Sandy's Effect on the Cattle Market   

How The Current Price of Gold and Silver Is Determined

As the democratic masses increasingly sense that their living standards are becoming threatened, they have been blindly authorizing their governments to do "whatever it takes" to arrest the impending economic collapse.

In fact, as the vocal voting public insists upon quick solutions to the economic crises, politicians are ready and waiting to analyze popular needs and desires in order to deliver the messages that the people so badly want hear.

Politicians are more and more being asked to artificially prop up asset prices, the Dow and the housing market in order to help the average person start to feel good again about the fundamentally weak economy they live and work in.

Price Stability Goal Means No End to QE Likely

Unfortunately, no natural end to the Fed's recent Quantitative Easing programs exists. Once the QE-driven money printing presses have been used to prop up markets artificially,the program has to be continued ad infinitum to keep 'prices' at levels where the authorities want them to be.

Eventually the market manipulators will probably need to enforce some form of price stability to keep the masses happy. In this regard, the control of oil and gas prices is becoming increasingly likely.

Such emotionally driven pricing policy should not be taken for granted since they are the wind blowing across an ocean of fuel that has accumulated over generations of attempts at quantifying and controlling nature.

Financial Socialism Looms

None of these policy decisions are a one-off or temporary shift. Instead, they represent a concerted move toward new form of financial socialism.

In all likelihood, this increasingly obvious trend will not end through the political process but instead via a complete currency collapse as people lose faith in intrinsically worthless paper currencies.

Physical Precious Metals Provide a Safe Haven

Perhaps the best path for those who perceive this pattern is to move simply and quietly against the rising socialist tide by preparing themselves mentally, physically and financially for such a possibility.

When it comes to the financial aspect of this preparation process, the smart observer of the prevailing socialistic trend will be moving the portion of their wealth they would like retain out of the unsustainable financial system by taking possession of hard currencies like physical gold and silver.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

Sandy's Effect on the Cattle Market   

Is optionFair a Good Binary Options Platform?

Binary Options Trading has become increasingly popular recently, especially since it was made available and given some credibility by the CBOE. One of the leading binary options brokers is optionFair, with its own trading platform that is simultaneously available in app format for tablets and smartphones. OptionFair is based in the British Virgin Islands, and it offers three trading strategies on 63 different assets, which is one of the widest choices available for any platform.

User Interface

Using software provided by Tech Financials, the trading platform is very clear and user friendly, and is available in 12 languages. You immediately see the asset that you are trading, the choices available in the trade, the type of trade, and a real-time graph of the asset. You can select a strategy and the asset with one click, and reporting and risk assessment are easily available.

Assets & Strategies

OptionFair's offering of assets includes Commodities, Indices (13 different indices from around the world), 18 currency pairs and 26 stocks. Each of these assets can be traded using three strategies: High/Low (a simple process of deciding whether your asset will close higher or lower than a given strike price), One Touch (decide whether the market will or will not touch the target price) and Boundary (decide whether the market will close in or out of the range formed by the upper and lower target prices). All trades are free of commission, and the size of your trading account determines how much you profit from a given trade. Small accounts can expect returns of 70% per winning trade, while larger accounts stand to gain up to 89% per trade.

Compliance with Regulatory Standards

The important issue with the optionFair platform is that you are trading against other traders, not against the system. This means that you are offered assets that have winning potential (unlike many platforms), and you have a fair chance of success. OptionFair complies with the regulatory framework provided by CySec (Cyprus Securities and Exchange Commission) as it works to develop an international reputation.

Technical Analysis

As Binary options trading is primarily a news driven strategy, optionFair provides access to up-to-the-minute news updates, as well as a daily market analysis. You have access to historical data for your own testing purposes, and the platform has a clear graphical representation of the movement of each asset. At this time, facilities for additional technical analysis procedures using candlesticks and moving averages are not available, so you will need your own technical analysis software with access to live data (not 20 minutes delayed!) and 1-minute or 5-minute graphical features. If you have an account at any other normal stock brokerage, you will have access to this type of information for free.

Sandy's Effect on the Cattle Market   

A Pre-Election Precious Metal Price Cleanse

As the upcoming presidential election looms on November 6th, the recent 'correction' lower in gold and silver came once again as the COT report showed short positions held by Commercial Traders increasing notably as the net long positions held by large and small traders also grew.

Furthermore, not only were they running substantial short positions, but it seems as though the Commercial traders, which consist primarily of big bullion trading banks, needed to print a price under the 1735 level in gold - which corresponded to the 32.50 price level in silver - in order to trigger some substantial stop loss sell orders.

The rather predictable result was a sharp, but short lived, stop loss fuelled decline in both of those precious metal markets, as the weekly price chart below shows.

Shaking Out the Weak Longs

Overall, this downside price action looks pretty typical of a mid-rally attempt to shake out weak longs by the chronic precious metal shorts.

Nevertheless, once the commercial traders have managed to shake out as many as they can of the weakly held speculative traders that have only recently established their long positions, their typical trading pattern will be to start covering their shorts once the stop-driven downside move loses momentum.

Also, most of the longer term traders who have been accumulating silver and gold in the hopes of an upside breakout will probably be covered enough by their recent gains to stop worrying about a temporary correction and hang tight in order to keep making money on the long side as the market recovers.

Handle Target

The prevailing chart pattern shows that the 'handle'of this correction will probably be completed in the very near term. Initially, the handle target was in the region of $1688.00 for gold and $31.50 for silver.

Nevertheless, despite this recent correction, the current outrageously bullish technical picture for the precious metals supports the view that strong support seen at the $1720.00 level for gold and at the $32.50 level for silver will hold.

This is the perfect sort of price action to accompany the declining volume numbers.

Price Corrections Present Opportunities

Price corrections like this can serve certain behavioral needs of market manipulators since they tend to undermine sentiment, as they also deflect attention and momentum away from the precious metals sector.

Still, letting the big commercial players trigger sell stops like this can actually be a rather good thing. It just creates some much needed buying opportunities for smart smaller traders.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

Sandy's Effect on the Cattle Market   

The Great Precious Metals Managed Retreat

Many observers, notably GATA, have characterized the more than decade long run up in the precious metals markets as a managed retreat orchestrated by the big bullion banks.

These banks typically profit by using their large transaction size and deep pockets when the market is vulnerable to induce substantial price variations, often by triggering stop loss orders placed by short term speculators.

Price Suppression More a Reality than a Theory

Perhaps one of the more popular criticisms of price suppression theories is that if the silver and/or gold markets were so managed in this way by the bullion banks, why have their prices risen so steadily over time?

First of all, this critique is weak because even largest corporate banks would have a hard time holding back the long term flow of investment funds into the precious metals markets. They may be able to trigger short term fluctuations, but the long term trend will overcome those variations.

On the other hand, if the real mover and shaker behind the bullion banks' notable precious metal selling activities and consistent large short positions is actually a central bank or another official agency suppressing the price in order to prevent rampant inflation due to a devaluing paper currency, then that makes a lot more sense.

Such an entity can print effectively unlimited amounts of dollars to pay for its losses, and it would never be forced to deliver physical metal it did not have because they would generally be trading futures on the short side. Since the seller of a futures contract controls physical delivery, they can simply opt not to deliver and cash settle instead.

Other Financial Scams Exist, so Why Not Price Suppression?

Furthermore, it is interesting to note in the age of the LIBOR scandal, FASB mark to market rule changes, HFT programs front running retail investors, MFGlobal's dramatic demise, and Bernie Madoff's outrageous Ponzi scheme, that it continues to be taboo to even entertain the idea that the precious metals markets could actually be managed.

Of course, the acceptance of price suppression in silver and gold futures as a reality, or even as a likely possibility, will immediately call into question the real value of every other commodity also denominated in U.S. Dollars.

Basically, if inflation can be controlled in this way by manipulating futures markets, this strategy is probably being employed throughout the commodity markets to artificially prop up the intrinsically worthless Dollar and manage inflation.

Do Politics Underlie Price Suppression?

If price suppression is in fact an unspoken public policy, then it really becomes a political issue, which may be the hidden factor here influencing price discovery and value. Certainly it is not a stretch to consider fiscal overspending occurring in the name of political agendas. Such a policy would also be facilitated by historically loose monetary policy and may have given rise to the ever-intensifying economic cycles that the world is now experiencing.

Already, regulators have been'captured' as the game starts to become more exposed, which is consistent with the seemingly managed nature of the price suppression system.

In this scenario, the regulators are be left with the ability to make announcements and speeches only, and they have beenfurther compromised as the financial system crumbles, where the impetus to exert political influence has become especially acute as the State is running out or has run out of the means with which to impose its financial power on its own people.

Participants Increasingly Aware of Price Suppression

Although many market participants would still not dare to imagine that ultimate eventuality actually happening, keen observers are increasingly witnessing that process occurring in its early stages.

The market also seems to be progressively reaching the point where 'everyone knows' that the price of silver, gold and just about every other commodity is being politically managed to the point where underlying fair value across the board has become remarkably distorted.

Furthermore, it is no coincidence that this price suppression theory fits the facts so well, despite the sheer complexity of the manipulative methods employed and the instruments traded in what has essentially become a black hole of shadowy derivatives markets.

Ignorance need not be conscious, so there's no need to turn a blind eye to an issue just because very few people actually understand what is going on all over the world today as fiat currencies gradually make a managed retreat to their true value - zero.

For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit http://www.silver-coin-investor.com

Sandy's Effect on the Cattle Market   

How and Why CFD Traders Fail?

It is true that the world of trading contracts-for-difference or CFD poses a lot of opportunities and advantages. However, it is also a fact that some people fail too. The sad part here is that mistakes are from the same causes most of the times. Hence, in order to avoid this, this article will expose some of the most common mistakes that many traders do why they fail. This is not to make fun out of it, but to learn the lessons underneath it or even avoid each of these.

Specifically, the top three (3) most common mistakes that many CFD traders commit are about over leveraging, market misreading and even absence of stops.

Over Leveraging

The worst thing that leverage could offer is to make a trader over trade due to over leveraging. Well, this is because traders can enter a trade even with just a minimal percentage of the asset. Hence, they do not need to have too much capital investment to make a trade. This may be an advantage, but it can also serve as a disadvantage too.

However, another problem about this is that it is quite too difficult to determine the time when we can say that it is beyond the normal. In other words, there could be various views in determining what is "over" trading or not. Hence, it seems that it is hard to judge. After all, it may also be unique for each trader, depending on their risk portfolio as well as market tolerance. Some people would say that it is also about the greedy tendency of many traders to earn as many as possible. Nevertheless, it is also debatable like the term "over" in CFD trading.

Nevertheless, I think the golden rule is to enter into something that the trader can afford. In other words, it should be within someone's financial capability. It is not acceptable to enter into various transactions just because they can be put into leverage, but the trader does not have a financial means for it in the first place.

Reading the Market Differently

Secondly, on the other hand, misreading the market is another particularly common mistake to many traders. Sometimes, it is maybe because they are referring to the wrong reading materials, or they are just missing out something. If traders miss out something, it will surely lead them to an impartial decision since they were not able to consider all the significant factors.

Absence of Stops for Protection

Further, the third, but not the least, most common mistake that many traders commit is not having stops. This is, in fact, a protection for them for over leveraging, as well as against other possibly adverse market conditions. Stops are extremely valuable because these help a trader to secure their earnings while limiting losses at the same time.

Sandy's Effect on the Cattle Market