Futures (Cedar Falls, IA) articles from August 2008

Futures (Cedar Falls, IA) archives from August 2008

Round 'em up, again.(EDITOR'S NOTE)
August 1, 2008... It's tough to be a speculator these days. Not only do they have targets painted on their backs, but they are being blamed by the likes of the oil companies, airline executives, Wall Street and Congress for being the reason why crude oil hit...

Blame game continues.(DAMN SPECULATORS)
August 1, 2008... Speculation is still a four-letter word in Congress. The Commodity Futures Trading Commission (CFTC) remains on the defensive after a continued barrage of proposals, bills and criticisms by lawmakers demonizing and blaming speculators for...

The ballad of Sam and Phil.(BUSTED)(bank fraud)
August 1, 2008... Two long-running dramas in the futures industry came to an end in July when former Refco CEO Phillip R. Bennett was sentenced to 16 years in prison for his role in the fraud that resulted in the bankruptcy of the giant commodity brokerage firm...

Nyse shops overseas.(International News)
August 1, 2008... NYSE Euronext bolstered its presence in the Middle East and India with its acquisition of 25% of the Doha Securities Market (DSM) in Qatar and 5% equity interest in India's Multi Commodity Exchange (MCX). The DSM stake purchase for $250...

Optionsxpress buys Open E Cry.(International News)(Brief article)
August 1, 2008... OptionsXpress Holdings Inc. has agreed to acquire Open E Cry LLC, for $13 million in cash, $5 million in stock, plus additional consideration. The deal is expected to close on July 1, 2008. Last year, Open E Cry generated approximately $8...

CBOE/CBOT ERP vote postponed.(International News)
August 1, 2008... The Chicago Board Options Exchange (CBOE) postponed the July 17 membership vote to approve a proposed exercise right settlement reached with former Chicago Board of Trade (CBOT) members. The agreement in principle would give former CBOT members...

Ready, set ...(International News)(Stock Exchange of Thailand)(principal to demutualize )(Brief article)
August 1, 2008... The Stock Exchange of Thailand's (SET) board of governors approved in principal to demutualize by 2011; by which time it will have achieved its five-year strategic targets. In the first phase of the strategy, SET will focus on strengthening the...

Commodity (exchanges) are hot.(International News)
August 1, 2008... Two new Asian commodities exchanges are preparing to launch within the next year - one run from India and based in Singapore, and the other run from London but based in Hong Kong. The Singapore Mercantile Exchange (SMX) is awaiting approval...

Deal or no deal.(SWEETENER)
August 1, 2008... With its stock plummeting and Nymex members threatening to vote no on the CME Group agreement to buy Nymex, CME Group has initiated a $1.1 billion share buyback program, which will run for up to 18 months and operate in the open market, a...

Shake-out in ethanol.(SOUR MASHED)
August 1, 2008... The push for renewable energy sources sparked a surge in the biofuels industry, but a significant number of smaller ethanol plants have recently filed for bankruptcy or been scrapped before completion. Rising corn and energy prices and slimmer...

Kloet named TMX Group CEO.(Trading Places)(Thomas A. Kloet has been appointed)(Bernard Dan has joined MF Global )(Jack Jeffery has been named SuperDerivatives)(Brief article)
August 1, 2008... Thomas A. Kloet was named chief executive officer of TMX Group, formerly TSX Group. Previously he was senior executive vice president and COO of Fimat USA and its successor, Newedge USA, and before that, CEO of Singapore Exchange. "I am...

Fighting for you?(Managed Money Review)
August 1, 2008... With the use of commodity futures as an investment vehicle coming under fire, as demonstrated in numerous stories in this issue of Futures, we decided to ask Jim Rogers what he thought of recent Congressional proposals to restrict investments...

Down and dirty.(Hot Commodities)
August 1, 2008... Since May, Dow Jones Industrial Average futures have skidded from 13,064 to 11,211 and appear headed to lows set in July 2006. [GRAPHIC OMITTED] "There are a lot of variables," says Daniel M. Gramza, president of Gramza Capital...

Bean pile.(Hot Commodities)(Brief article)
August 1, 2008... While soybean acreage increased 17% from last year, it won't satisfy the 2009 usage table, having given way to very high-priced December 2008 corn. "The farmer rightfully chose to plant corn at those prices," says Tom C. Willis of Mesirow...

WTI: WTF?(Hot Commodities)(crude oil)
August 1, 2008... Every time crude oil appears to have topped off and a correction is in sight, it surges to another all-time high. In mid July a $10 correction was wiped away in just over 24 hours. Carlos Cunningham, broker for Prudential-Bach, says the...

The house of forex.(Forex Trader)
August 1, 2008... The trials and tribulations of dollar bulls are a well honed theme. With the collapse of the dollar, an almost unanimous sentiment, it may be time to think about recovery. A recovery will be the result the Federal Reserve increasing rates when...

Post card from the edge: depending on whom you speak with, U.S. equity indexes are either at the end of a short-term downward correction or standing on the precipice of an extended repricing. Our experts take a look.(MARKETS)
August 1, 2008... The Dow Jones Industrial Average kicked off the third quarter by officially entering bear territory, dropping to 11,296, on July 1, a 20% decline from its Oct. 9, 2007 high of 14,165 (see "It's official," page 27). The S&P 500 followed a week...

Tech talk: are S&Ps at new top or old bottom?
August 1, 2008... At the start of the third quarter, markets are at a critical inflection point. Many Elliotticians and other market analysts have abandoned hopes for a second half recovery and now look for a crash or another significant decline from current...

The naked option ETF solution: many traders have discovered the benefits of selling naked options on stocks. Done right, this sometimes-risky strategy can be quite profitable. But selling naked options on exchange-traded funds can reduce your risk. Here's how.(TRADING TECHNIQUES)
August 1, 2008... Selling naked options on an exchange-traded fund (ETF) has an advantage over selling an individual stock option. In terms of their vulnerability to market superises, ETFs are usually safer than individual stocks. One stock may take a big hit...

Fed fund futures could be wrong.(Market Strategy)
August 1, 2008... The prolonged increase in U.S. inflation and accompanying decline in the value of the dollar has brought about obvious changes in the rhetoric of Federal Reserve officials, to the extent of triggering an aggressive sell-off in Fed fund futures...

In defense of data: in today's world of super capable analysis software, often the importance of the most critical element of all--the price data--gets lost in the glitz. The bottom line, though, is that regardless of the foresight of the latest whiz-bang indicator, the data, still, are the thing.(TECHNIQUES)
August 1, 2008... Just as there is no such thing as being a little bit pregnant, there's no such thing as data being a little bit wrong. Old-school chartists appreciate this importance of the efficacy of data. When you've built charts by hand, pouring in...

Swaps vs. eurodollar spreads: an increase in U.S. Treasury yields can cause the eurodollar rate curve to flex. This movement is predictable and should be reversed if Treasury yields start to fall from their current levels. Here's how to read the data.(TECHNIQUES)
August 1, 2008... The close connection between the yields of five-year interest rate swaps and eurodollar futures for delivery at the 20th quarter makes this pair an interesting spread candidate. Not only does its analysis tell us a bit about the dynamics of the...

Simple profits beat complex losses: you don't have to break out your old calculus text and buy a new computer to make reliable profits in the stock index market. Common sense, simplicity and nimbleness are better weapons in the fight against trading mediocrity.(TECHNIQUES)
August 1, 2008... There's a lot to be said for keeping it simple when it comes to trading. Indeed, it is possible to have a trading system with just three easy to understand and easy to follow rules that will allow you to outperform the market. Moreover, this...

When a good trading plan comes together; In the first installment of this two-part series, we looked at the pros and cons of various money-management techniques, discussing them conceptually as part of a larger trading plan. Here we cover the application of this approach.(TECHNOLOGY & TRADING)
August 1, 2008... The ability to manage your trading program properly requires you to do a lot of things simultaneously. Good trade management should allow you to process all traded systems and markets, walking forward one time frame at a time. In other words,...

Technical analysis best practices; As a new trader, you will discover the tools used to analyze the markets. Regardless of the ultimate path you take, you will benefit from an understanding of the time-tested approach of technical analysis. In this first of five parts, we offer an introduction.(FUTURES 101)
August 1, 2008... Price is everything. Whether you are buying or selling, employing market neutral strategies, or even sitting in cash, price has a fundamental effect on your fortunes--realized, missed or forgotten. Technical analysis, at its core, is all...

2008 public funds returns (through June 30).(Funds Review)(Statistical table)
August 1, 2008... Unit Change Starting value for Date unit through 2008 started value Name of fund Trading...

Inside commodity index funds; Index funds are attempting to exploit the current bull commodity market, but some people believe the funds themselves are responsible for the move. Here is a look at the structure of index funds and commodity-based ETFs.(MANAGED MONEY)
August 1, 2008... The idea of index funds is a sound one. If active managers are targeting returns to an index, say the S&P 500, why pay more for active management if you can invest in a fund with the goal of replicating that index? It worked as equity managers...

Are market distortions driving high prices? With commodity prices at all-time highs, governments around the world are asking if excess speculation is to blame - or if the culprit is good old supply and demand. Perhaps it's a little of both - with the specter of greater if well-intended government-driven market distortion on the horizon.(TRADE TRENDS)
August 1, 2008... An early June edition of the German newsweekly Der Spiegel said it all: "Angriff auf den Wohlstand-Attack on our Wealth and Well-Being," and below that: "How speculators are making life ever more expensive." [ILLUSTRATION OMITTED] ...

Jarecki: still trail blazing.(Trader Profile)
August 1, 2008... Long before Goldman Sachs and Dow Jones AIG created their commodity indexes and before Jim Rogers trekked across the globe on a motorcycle discovering the beginning of a long-term commodity market imbalance, Dr. Henry Jarecki created a trading...