Traders like to place commodities in related buckets — grains, meats, precious metals, energy, etc.—which often create pair trading opportunities. In energies, however, crude oil and natural gas have experienced a correlation break-up.
If you have yet to be aggravated by some market pundit opining “commodities” rose or fell because “the dollar” fell or rose, congratulations; this means you have been spending your days pursuing us
Not too many people realize it yet, but the worst part of machine-driven trading is the absence of human traders making the same mistake over and over again.
There are no sure bets in financial markets. For years we could stipulate traders associated higher gold prices with higher inflation, and with good reason.
