Platinum and cocoa surge

The biggest movers this morning to the upside in commodity markets are platinum and cocoa. Overall we are sensing many "risk-on" markets, including equities, are gaining strength by the day, as the relief of a European bailout is fueling rallies in many commodities and the global stock markets. The U.S. 30-year Treasury bond has had a nice rise in yield recently, and we expect this to continue if the risk-on trend continues due to positive economic data coupled with less concern over an acute catastrophe in Europe.

We also are hearing a lot of talk about Federal Reserve Board Chairman Ben Bernanke's and European Central Bank head Mario Draghi's speeches at the end of August/beginning of September. It looks as though market participants might be preparing for more liquidity being thrown at the European financial system, and perhaps a more positive view of the U.S. economy from Bernanke.

October ’12 Platinum futures have shot above a previous swing high level of $1430 due to acute supply disruptions in South African mines following recent labor unrest. The next upside target in our view is the $1510 (see chart) high last seen in June 2012. We think the previous high of 1430 will be major support going forward.

 

About the Author
Anthony Lazzara

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

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