The crowd’s focus this week will be familiar: central bank policy.
EYE ON GLOBAL CENTRAL BANKS
Japan’s monetary policy statement comes out Wednesday. This is the big one because Japan’s uber loose policy is a key source of liquidity boosting cyclical assets higher around the world. Minutes to the Bank of England latest meeting are due out the same day. On Wednesday, Fed Chairman Bernanke testifies before the Joint Economic Committee and minutes to the latest FOMC meeting are due.
TAKE A LOOK AT NAT GAS
With stocks extended, natural gas provides an attractive alternative this week. In early May, NYMEX futures started tracing out a substantial base – a period of churning after a downtrend in which control shifts to the bulls. Price broke out overnight.
A key tell for this market is how aggressively nat gas was bought on Friday after a plunge the day before. I’ll be looking for dip buying opportunities this week, focusing on UNG (United States Natural Gas Fund) for clients who trade exchange traded products rather than futures.
Elsewhere, copper – through JJC (iPath DJ UBS Copper Total Return) – continues to look like an attractive market for buying into intraday to multi-day price weakness.
Good trading this week, everyone.
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Learn more about Burba and his analysis here.
