Futures Magazine September 01, 2008
Cover Story
U.S. dollar: Misery finds company
The Federal Reserve Bank cut 325 basis points from the Fed funds rate from September 2007 through April of this year in an effort to stimulate our flagging economy and to shore up the banking
Breaking News
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Speculators redeemed
After a cruel summer for speculators, Congress rejected two bills that would have limited speculation in the commodity markets before it left for August recess. On July 25, the Stop Excessive Energy
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CME sweetens Nymex deal
By the time you read this New York Mercantile Exchange and CME Group members will have voted on their merger agreement and chances of approval are greater due to revisions to the agreement announced
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Optiver price manipulation
In the midst of accusations from some in Congress that it has not been diligently monitoring energy markets, the CFTC on July 24 filed a case against Netherlands-based Optiver Holding BV, two of its
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Microfinance and emerging markets
If there’s one thing microfinance projects and small-cap developing-world investments have in common, it’s that they’re small and fragmented. But if there’s another thing they have in common, it’s a
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FXLQ funds freed
Since December, customers of Forex Liquidity LLC (FXLQ) had been unable to trade or access their accounts, but a deal between the broker’s receiver, Robb Evans & Associates LLC, and Global Forex
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Short selling restricted
As a result of what it called “a substantial threat of sudden and excessive fluctuations of securities prices and disruption of the functioning of the securities markets,” the Securities and Exchange
Software Review
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Pro Sizer TM 384
The software is designed to assist any trader of stocks, futures, forex or any other tradeable financial instrument by analyzing the effect of different “money management” or position sizing
Trading Techniques
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Go your own way: Trading off the open
The equity market rarely acts how everyone expects and the Waddell retracement at the open is based on this concept. Moreover, it is viable regardless of overall current market trends. The setup
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Taking chart patterns to the next level
Learning any new skill, such as driving a car, is awkward. Basic task recognition skills, such as putting the car in drive and even adjusting the side or rear windows, is a project. Once the car is
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Can automated scalping work for retail?
The growth in the electronic trading of stocks, futures and options with its low commissions and speed of execution has allowed market data networks that support high-frequency trading by retail
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Profiting from the gold/oil ratio
Measuring the price of oil against gold offers a valuable perspective on the true value of these commodities as it provides a unique alternative to measuring them solely against the currency in which
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How algo trading is changing the landscape
On Friday, June 27, 2008, the Dow Jones Industrial Average closed 19.9% below its October 2007 high. The generally accepted definition of the start of a bear market in equities is a 20% drop, which
Technology & Trading
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How airlines hedge fuel risks
For airlines, hedging the cost of fuel has perhaps never been more important than it is now in the midst of a breathtaking ascent in oil prices. One of the most successful airline hedgers, Southwest,
Forex Trader
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Detecting the end of trends
The trading axiom “the trend is your friend” has held many traders in good stead, but the caveat “except when it is at an end” has also held true. One of the most important challenges for the forex
Futures 101
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Precision patterns
While traditional price patterns are highly subjective, some related methods that fall under the broad umbrella of chart analysis are more exact. These are gaps, which are sudden jumps in price,
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Chart patterns for beginners
If simple is best, then it’s tough to argue against chart patterns. They don’t require special software, a computer or even a calculator. All you need, at minimum, are a printed price chart and the
Industry Trends
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Not just another commodity bill
Mr. JOHNSON (for himself, Mr. H. SIMPSON, Mrs. M. SIMPSON, Ms. L. SIMPSON, and Mr. B. SIMPSON) , all of Springfield, introduced the following bill; which was read twice and referred to the recycle
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Market frontiers: Africa and Latin America
If you go back 150 years, Calcutta, India was more advanced than Chicago,” says George Ferguson, who 30 years ago founded an import/export business called Chicago Midwest in part to spread the
Markets
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Tech talk: Bottom dollar?
When it comes to gauging the strength of the U.S. dollar, one of the things we often focus on is the performance of the USD Index (DX). The DX is a weighted average of six foreign currencies against
Editor's Note
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Dollar pumping
Last January on a flight to Los Angeles I sat next to a young man from Australia. He and his fellow basketball team members were in the United States for some exhibition games. I believe he was
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Sound Off
I have been a reader for years of Futures magazine. I always looked forward to reading the profile of traders covered on your back page. I have noticed a trend in this column of leaning toward
Book Reviews
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Forex Simplified
The book is geared towards beginning forex traders, offering basic definitions and outlining common traps for novice traders. She advises avoiding companies that promise little or no risk and firms
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Your Money and Your Brain: How The New Science Of Neuroeconomics Can Help Make You Rich
Among the conclusions: we humans impose order on random events; we get more fixated on the size of a reward, such as a lottery, than on the improbable odds of hitting it. The anticipation of a score
Market Analysis
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Housing market hits copper
Copper is a barometer of the world economy, and tellingly it has fallen to $3.41 per lb. in mid-August from $4.05 in July. “As we see copper prices fall, we consider that there will a global slowdown
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Nasdaq leading sector
The E-mini Nasdaq 100 has outperformed other equity indexes during this summer’s volatile trade. A primary reason for its resiliency is that smaller companies, of which it has many, are simply more
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Orange juice prices fall
Having just crushed the juice and shut down in July, orange juice tanks are full and frozen concentrate orange juice futures have declined to $0.98 per lb. in August from $1.38 in January. “It’s as
Managed Money
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Short-term benchmark
We have noted the growing demand for short-term managed futures programs in this issue’s Managed Money feature and Trader Profile and now both short-term programs and allocators looking for the best
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After the fall: Natural gas near bottom
Midsummer 2008 witnessed a precipitous decline in the price of natural gas that had many wondering if prices ever moved anywhere other than down. But the pace and scope of the sell-off has had the
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Forex traders looking short term
When we last looked at currency-specific commodity trading advisors, we saw an explosion of new programs that were targeting short-term strategies. Numerous advisors noted that there had been a
Options Strategy
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An intrinsic condor call spread
With growing demand and carryout supplies getting smaller, there is little room for a disappointing corn crop this year. Since corn became both a food and energy product about five years ago, its
New For Traders
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New for Traders
CME Group will launch CME Cleared Swaps on Sept. 2. CME Group also will offer 3-month Overnight Index Swaps futures and options on futures. The futures contract will be available for a trade date
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CBOE expands VIX line
The Chicago Board Options Exchange (CBOE) launched the EuroCurrency Volatility and Gold Volatility indexes in late July and announced plans to expand the volatility franchise to other commodity based
People
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Savignac is COO of Newedge Americas
Robert H. McCooey Jr., senior vice president at Nasdaq OMX Group, will expand his role to include new listings and IPOs in the Americas and the Asia-Pacific region. Also at Nasdaq OMX, senior vice
News
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CME sweetens deal
By the time you read this New York Mercantile Exchange and CME Group members will have voted on their merger agreement and chances of approval are greater due to revisions to the agreement announced
Trader Profiles
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RCM: A short-term revolution
“We thought he was a bright guy,” was Dunn’s initial reaction to Mundt. “He bounced ideas off us, he was giving us some real time trades and we gave him help and told him we would be a lot more
Profiles in Forex
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Jack Ross Crooks Jr.: Likes the forex action
Jack Ross Crooks Jr. describes himself as corporate finance guy. He got his early experience trading stocks and gravitated to futures, trading currency futures in the pit at the Chicago Mercantile
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Oil-Dollar Support Equation
It’s time to sell EUR/USD and stay with the trade. Could it be that crude is suffering from a reality bite? The reality is that the big four in the developed world, the United States, United Kingdom,
