Matthew Bradbard submits:
Is there a bubble in China? I do not think so as it relates to commodities, but expect volatility as they will be absent from the markets next week. Though past performance is not indicative of future results, I recall last year big swings and would expect the same this year. All things being equal, volatility is already present so just a heads up.
As for the markets: Oil finished lower but pared its losses. Our clients have no exposure but we will be buying dips in the weeks to come, given the opportunity. A trade below $70 should be bought! We like the action in natural gas today. In the next 2 weeks we will be looking to gain long exposure in the May contract for clients via options and futures. In years past, when natty bottoms in mid-winter we’ve seen a trade higher into late April (15 out of the last 19 years). Past performance is not indicative of future results.
