Entries by Peter Brandt

Coffee Futures are Brewing

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Coffee Futures are brewing again. Historically, the Coffee market has been a yo-yo — major Coffee bull markets followed by major bear markets, as shown by the quarterly graph. The market has been trading in an area of historical support.

Simple Trade Management

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I have absolutely no control if the next trade or series of trades will be profits or losses. However, with a proper Trade Management process, I know that I only have control over:

The patterns I identify as trading opportunities – do they meet a certain standard?
The orders I enter – is my order entry processes consistent with conducting trading as an organized business enterprise?
Leverage and sizing – (Risk Management) am I risking too much, but also, am I risking enough to make a trade matter if I am right?
Ongoing Trade Management – am I taking the right balance between protecting capital and allowing a trade to fully develop?

Gold is Pausing

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While I believe Gold has experienced a cyclic bottom, gold is pausing here. I have for several months openly expressed my opinion that the advance would be choppy at best. In recent Factor updates (premium service) I have highlighted the significant problem with the composition of open interest – the commercial interests with a record short position and the large specs (hedge funds and large traders) with a record long position. The Gold market gained way too many friends too early. I am not surprised by the lack of upside follow through in Gold. I might be interested in buying a retest of the falling wedge on the weekly graph in the 1170 to 1180 zone.