Eoin Treacy's view

I’ve been more active in trading recently because I feel the uptick in volatility across asset classes has increased potential for reversionary rallies where a buy-low-sell-high baby steps strategy could pay off. Veteran subscribers will be familiar with our mantra “Don’t pay up for commodities”. The corollary for that is to become more interested when they have experienced sharp declines. 

Oats has pulled back on consecutive days and paused today in the region of the short-term progression of higher reaction lows. I increased my position paying 225¢ for another March contract. Having failed to break out, I have less confidence Oats will perform favourably and will close out the position following any rally.  

I currently have longs in platinum, palladium and silver and opened a long in gold today paying $1075.8 for a February contract, in the expectation that a reversionary rally is now more likely than not.  

Energy prices continue to fall but natural gas is accelerating lower and is already at historically low levels. I opened an initial position today paying $1.815 for a January contract. The spread is quite wide on this contract and there is no evidence it has bottomed so my position size is small and I intend to add to it if it falls further. 

All prices include spread-bet dealing costs.