Trader,
I've wanted to do a posting about this for quite a while, but haven't had the chance…until now!
What's driving up the price of Wheat and Crude Oil??
Is it SUV's? Could it be that Americans HATE bread? Are there enough barrels of oil?
Well it could be any of those things, but one thing in particular has been a BIG contributing factor…Bio Fuel Mandates.
The reality is Corn, the key ingredient in ethanol, is more profitable for the farmers to farm due to the heavy subsidization. Therefore the price of Wheat is going up, up, up because the supply is going down, down, down…it's simple economics yes…but how do we profit from it??
The chart above shows exactly how…Get LONG on the GREEN and EXIT on the RED. The above chart screen capture was taken at 1pm est live, so this could continue to go higher and continue with the profits…or it could hit a stop and lock in your profits in that trade.
So how do Government Mandates affect Crude Oil?
I don't have enough space to write about it all!!! But I do have room to tell you how to profit from it:
The chart above shows exactly how…Get LONG on the GREEN and EXIT on the RED. The above chart screen capture was taken at 1pm est live, so this could continue to go higher and continue with the profits…or it could hit a stop and lock in your profits in that trade.
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**Your Feedback**
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What I'm doing is keeping records of NEW and OLD Government Mandates and how they can/will effect the trading markets both Futures and Stock related for a future blog posting. So if you know of any mandates, and you're curious how they can/will effect your markets, post a comment to this posting and I'll get to work on it.
OH, and if you want to learn more about the charts above and the buy and sell signals see link below for a few free videos explaining how they work:
Have a GREAT trading day/week/year!
All my best,
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