My pick: Buy oil at $68
Expertise: Technical analysis
Average time frame of trades: 5-10 days
Explanation: The oil price has more or less been trading in a choppy consolidation over the past several months, without moving too far in any one direction. While we still see room for additional falls in the oil price to below $70, these could be good buying opportunities as the oil price seems to be very well supported in the $68 area. Market analysis also suggests that the oil price is oversold. Strategy: buy at $68 for a $78 objective with a stop at $63.
My pick: Remain short gold at $1,070 and short Nasdaq 100 at 1,840
Expertise: Fundamental and technical analysis with risk management
Average time frame of trades: 1 day to 1 week
Explanation: Many stock indices have experienced volatility since last week caused by the sudden swell of risk aversion that struck the market. Given the momentum of this risk aversion trade as well as the large number of fundamental economic concerns and the high level of correlation between markets, it can be tempting to pile in on the trend. But, in the current environment it’s worth limiting your exposure to any one trade. Therefore, I will just maintain my current positions.
My pick: Stay short crude oil at $79
Expertise: Global macro, classic technical analysis
Average time frame of trades: 1 week–6 months
Explanation: I sold crude three weeks ago at $79 after the weekly chart showed a bearish engulfing candlestick pattern below resistance at the top of a rising wedge formation. After a brief correction higher, prices have resumed the downward momentum and are now testing support at $71, with a break lower exposing $69.44 as a level to look out for. Strategy: Remain short crude oil, initially targetting $66.10. Trail the stop-loss to $78.