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Frank Petricca

Frank Petricca is writer of “Petricca’s Pick” focusing on a Long Term approach for commodity traders that have an interest in Long term accumulation. Frank has worldwide recognition spurring innovation that points to communicating a different way to approach ones investment portfolio using commodity instruments. Contact Frank at 312-690-7763.

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Petricca’s Pick 12/07/2023

By On December 7, 2023 - 9:14 AM · In Market Commentaries, Petricca’s Pick

SUGAR/RBOB UPDATE

 

My letter dated August 31st recommended SHORT gasoline futures (RBOB). Yesterday, gasoline futures sold off dramatically punching out new lows for the move and traded at the lowest level since last June. My initial position was established at $2.34 basis March, $2.53 basis December. Today, March futures are trading $2.06. That’s a move worth approximately $11,200.00 per 1 contract.

 

 

My letter dated November 30th was specific recommending SHORT accumulation for sugar futures. On November 30th, my initial position was established at $24.32. Today Sugar futures are trading $21.94. That’s a move worth approximately $2,600.00 per 1 contract.

 

 

Energy markets collapsed in tandem for the last several days as the November 30th OPEC meeting underwhelmed the trade…

 

More importantly the final nail in the coffin occurred when the Energy Information Administration said gasoline inventories rose a whopping 5.4 million barrels last week, while distillate stocks rose 1.3 million barrels. The trade was looking for a rise of 800,000 barrels for each.

 

Clients and subscribers should also note that –

 

Crude imports by China saw a monthly fall of 10% in November, to a four month low of 10.37 million barrels a day, as reported by S&P Global Commodity Insights.

 

Sugar futures also plummeted to a 5-month low following a deflationary theme yesterday that affected many commodities.

 

Sugar prices have sold off sharply over the past week. Again, CONAB raised it’s 2023/24 Brazil sugar production estimate by 15% to 46.9 million metric tonnes from an August estimate of 40.9 million metric tonnes.

 

So, one might ask if investing in commodities….

 

Was I “in the market” this week capturing this exciting market Episodic Volatility?

 

If not…Maybe you need to change your approach.

 

Please know that until I changed my short-term mindset, my yearly bottom line never showed account appreciation.

In 1997 I decided to implement a Longer Term application and while there are certainly account drawdowns at times, by enlarge, when a major commodity move occurs I’m participating!

 

Remember there are four important components regarding my strategies…

 

  1. Positions are established only in the upper or lower 25% of the Long-Term trading range.
  2. Positions are established only when my trend following methodology is up or down within that 25% parameter.
  3. Positions are held until positions reach the opposite extreme high or low. (The upper or lower 25% of the Long-Term trading range).
  4. Correct money management strategies must be implemented.

 

There is no question that more that 90% of commodity investors lose money…

 

And it’s true that my strategies also incur drawdowns…

 

But – What I offer is a way to be “in the market” when major commodity moves occur.

 

My strategies require one to maintain –

 

  • Patience
  • Commitment
  • Vision
  • Discipline

 

Those of you that have an interest in additional details regarding my strategies should call me personally. 312-690-7763.

Would love to hear from you.

 

In the meantime,

 

Have a great year trading!

 

Best

Frank

Questions? Ask Frank Petricca today at 312-690-7763.        
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