Selection from trading signals

New trading signals were added to the app yesterday, in line with the schedule. As always, we immediately let you know on twitter. We use the same channel to select a few signals that caught our attention. This time, however, we decided to do so in this article.

Soybean oil: time for a change?

Our AI trading model has been long on soybean oil until recently. Yesterday a new short signal on soybean oil emerged in the app. The strength of the signal is rather weak as it is below the 1.0 threshold necessary for a valid signal. And don’t get confused by the similar strength of the current short signal at the beginning of December – there was an opposite signal with much higher strength back then. However, it’s the new bear spread in soybean oil that is much more interesting than the underlying. In this case, the signal is strong enough and, therefore, valid.

Turnaround in copper

The AI model has been consistently long copper and its bull spreads over the last few months. Moreover, it was one of the major opportunities we accented in our premium Research. It turned out to be a very successful strategy. Nevertheless, the situation seems to be changing. The long signal for copper disappeared yesterday as it is too weak (below 0.8 for many days) to be present in the app. On the other hand, a new bear spread in copper has emerged. Unfortunately, it’s still quite weak (below 1.0). The overall situation looks like a tactical pause in the current uptrend, rather than a sudden turnaround. This is also in line with our own opinion.

First signal in sugar

If I’m not mistaken, this is the first time since the launch of the AI trading signals when a signal for sugar appeared in the app. Specifically, it’s a spread. After a closer look, we have to conclude it’s a very interesting opportunity. Check it out yourself in the SpreadCharts app.

A few words at the end

These were just a few signals that immediately caught our attention. You’ll find many more in the app, so maybe you’ll prefer something else.

The opportunities are out there, as you can see. But keep in mind we’re entering the holiday season when the markets are less liquid. The prices tend not to move much, and bid/ask spreads can widen, which is especially true for more distant contracts and commodity spreads.

So what is the best strategy for the upcoming period? Well, in our opinion, it would be wise to take a break from the markets. It doesn’t make sense trading in such a low liquid environment. The markets usually pick a clear direction after the New Year and disregard the price action over the holidays. Don’t fear you would miss anything. And even if you do, there will always be plenty of opportunities in the commodity markets, which is their greatest advantage.

The whole SpreadCharts team wishes you a merry Christmas and happy New Year.

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