FRAMEWORK
Many research providers only highlight that there are shortages and that price has the potential to rise somewhen. We don't like that approach because it's hard to make money that way.
We aim to provide institutional investors with the most practical commodity research out there. We analyze the big picture and then analyze the fundamental story of every commodity sector and build our investment case. Last but not least we use simple rules to enter the market and apply our risk management.
Paints the big market picture and tells us where the broad market is headed.
MACRO
Judging and evaluating the liquidity environment and judging where economic momentum, as well as currency strength, is headed with the help of our leading indicator models.
Builds the investment case of every single commodity we cover.
MICRO
Specific commodity-relevant market data evaluations like storage, inventories, USDA reports, news environment, and important cross-market correlations.
Getting the timing right and helps us to place good entries and stops.
TECHNICALS
Our approach is to follow the trend and to trade with the commercials. Only in about 20% of our trades do we use counter-trend strategies.
EXAMPLE
Micro fundamentals confirm a divergence between price action and the fundamental data
CoT-, sentiment- and futures spread data confirm the setup. We also spot a divergence on the price chart.
Buy once the price closes at a new 12-day high and apply an easy stop at the lowest point of the previous three trading days