All language subtitles for Lesson 1 - Commodity Megatrades EN

Welcome back folks.

This discussion is going
to be with commodities.

So everything I'm going to be
talking about here should be viewed

in light up a paper trade only.

It's important.

You reduce this claimers

as a reminder, I'm not a
licensed commodity trade advisor.

Everything here is for
informational purposes only.

Okay folks, July, 2017, ICT
mentorship, make a trades.

The first lesson we're going to
talking about the commodity market.

okay.

First, what is mega
trades and what are they?

One of the first things I learned
from Larry Williams was this

notion of finding these big
moves that take place every year.

And basically what would make a trade
is, is, and I coined this term, this is

something I picked up from my Williams.

Obviously it was his catchphrase.

He used forum, but it's a large price
swing or trend that can produce massive

potential gains that when compared to
relative markets performs them all.

Yeah, they're easily to spot
historically in your price charts.

You can see them every
single calendar year.

These moves have huge institutional
sponsorship and it's coupled with

strong influences from actual supply
and demand factors that fuel these.

So, yes, while I usually snub my
news at supply and demand as a

technical approach to trading a
supply and demand, as it relates to

commodities is an absolute reality.

You have to, you have to have a
good feel for what the supply and

demand factors are for commodity
to have any measure of success.

Now, when we talk about commodities,
Obviously, there is a number of

commodities that we can choose from.

But one of the things I wanted to talk
about since we're talking about this

particular asset class now, is that,
should you be a commodity specialist?

Well, when following the commodity
markets, in my opinion, it's best to avoid

being a specialist or one market trader.

The reason why I say that is because our
favorite commodity can provide plenty

of setups to consider, but it might be.

Well, other markets are on fire.

In other words, if you're looking at one
commodity and that's the one you make

your bread and butter setups on, if you're
just looking at that one, you'll never be

able to find the bigger moves that take
place to have extrapolated price swings,

because you're only focusing on one thing.

Now there's nothing wrong with
having a special asset class or

a special market to do you use.

Bread and butter setups.

But if you limit your scope, just to that,
you're really discounting one of the best

opportunities for you to get in here.

And number one, improve as a trader, get
a better feel for the general market.

But the bottom line is, is if you
can be profitable trading, these

types of moves, why wouldn't you
want to and commodities as a whole.

Offer a very small universe of
Marcus to analyze, to seek medicines.

Kind of like the Forex market.

Uh, I choose to follow just a few pairs
of the majors, cross it, the dollar,

and it takes a lot of the ambiguity
away from what I should be doing.

If there's not a signal that's very clear.

I'm not doing anything.

If there is a time of the
year, when I believe that.

A major trade or a large
move is going to take place.

Then I'll be doing my analysis
across the entire spectrum of

that asset class for commodities.

You'll be doing it with
several different sectors.

Okay.

The first category that we're going to be
looking at is the agricultural markets.

And we're going to first look
here for mega trades and these

are markets that feed the world.

And as a result, they will have even
greater supply and demand factors that

move them droughts, insect damage frost
or bumper crops will have an enormous

effect on prices in these markets

and the grain markets.

We're going to take a
look at the grain complex.

And the first in the list
is soybeans soybean meal.

Soybean oil, both meal and oil are
derivatives of the soybean itself.

Wheat, corn, oats, canola, and rice.

Now boats and rice.

I traded it back in the nineties.

It's a rather thin market.

You can get hurt in that.

If it starts to do a limit moves.

And I did have the unfortunate experience
of being caught in some of those things.

And it's not fun.

So I'm going to advocate here,
not even to follow these, uh,

three specific grain markets.

Uh, when I was looking at the, uh,
commodities years and years ago,

back in the nineties, I would use
these thin markets to look for.

Drops in open interest to, to more
or less build the idea that I thought

that the green markets as a whole
would go higher or lower based on that.

And sometimes it worked
and sometimes it didn't.

So initially as a new trader,
I built a lot more significance

around that in my ignorance.

But, uh, now I just simply don't even
consider these three particular grains

to be watched at all, but I include
them here because of completeness sake.

If you look at the green complex
as a whole, as I taught earlier in

the mentorship for the grains, I
just like to follow the soybeans

themselves, uh, scoreboard, trade
wheat and sugar or trade corn.

So it's really only three
grains it's in that sector.

And the livestock meat complex
is going to be live cattle,

feeder, cattle, and lean hogs.

It used to be.

Pork bellies in this sector, but
they discontinued trading this

moving on.

Uh, we're looking at the softs.

This is a food group.

So we have coffee, cocoa,
sugar, and orange juice.

That brings us up to 10
commodity so far in agricultural.

And then the fiber will
be looking at cotton.

So that's 11 markets in
the agricultural market.

Okay.

The next area of opportunity is
found in the financial markets.

And this is a group of markets that
are hard in nature and industrious.

So industrial supply and demand factors
are going to move these commodities.

So wars economic drivers, interest rates,
imports exports will have a greater

impact on these kinds of commodity.

Okay.

The first one is going to be the
metals market and it's broken into two

categories, precious metals, which being
the gold market, silver market, palladium

and platinum palladium and platinum.

Again, I had experienced trading,
both are very thin, very thin, and I

include them here for completeness sake.

Just as a general rule of thumb, don't
want to trade them in industrial metal.

We have the high grade copper.

So in essence, we have three metals to
look at two precious, one industrial,

so gold, silver, and high-grade copper.

So we have a universe now it's
not growing exponentially.

Just adding a few more at a time.

And we have the energy sector next,
and we're looking at the markets

that make up that energy sector being
crude oil, heating oil, gasoline

futures, and natural gas futures.

Now, admittedly, I don't have
any experience trading futures

contracts in natural gas, but
in recent years it's been very.

And I knew folks online that have
traded it and done very well with it.

Not specifically with my content, but I
do know other traders that have made their

living trading, natural gas features.

Alright, so fundamentals.

And then they matter for this asset class.

So commodities require a measure
of fundamental consideration.

In our analysis.

We do not have to Wade through dry,
boring crop reports or cattle head.

A simple newspaper headline
might be all that's needed to

draw a fundamental conclusion.

Now, what do I mean by that?

Well, the idea of a market that
has been quiet for a little

while and suddenly there's the
discussion by way of a headline.

Uh, for instance, there, um, back
in the nineties, there was a, uh,

specific parasite that was supposedly
infecting the, uh, the crops in the U S.

And between that, the drought, um, and
the heat waves that were going on, all

the green markets went into a premium
market and it just became like vertical,

straight up runs on wheat, soybean
and corn net in 19 94, 95 time period.

And there was a lot of opportunity
on the upside as a result of that

ahead of all of those big moves.

There were headlines.

That suggested that there may be trouble
looming for those particular crops.

And it was mainly around the drought that
dryness in the bread basket, if you will,

the us, um, and there was this and I for
life, man, I can't recall what that, uh,

parasite was, but there was a, uh, some
kind of a bug that was trying to eat.

Um, and damage one of the crops.

And whenever you hear that type of stuff
and it's in the middle of summer, it

just like selling gasoline on a fire.

It will ignite all kinds of
buying and the grain markets.

This went vertical in the mid
nineties as a result of all that.

And one of the things I like
is looking at commodities mega.

Uh, futures magazine.

Um, they have a little
area in that magazine.

That's basically like the hot commodities
right now, and it's almost uncanny

how they always talk about them once
they have been moving for a while.

And if you do any analysis on them,
they're going to talk about them as

this is the hot market right now, right.

At a time when it would be at a
point over reversal and true to

form, that's what ends up happening.

So if we see.

Headline news.

Or if we see a special focus on a
specific commodity saying that they're

hot commodities or, or these are the ones
to be in right now, and we can look in

the chart and see they've been moving
for a while, uh, that tends to be a

really good conditions for mega trades.

The form, a reason why it's, because
it builds in an idea of sentiment.

And whenever there's an extreme
in market sentiment, whether it be

extremely bullish or extremely bear.

Uh, those are wonderful
contrary and signals.

And if we can get those in a time when
there's a overlap of technicals suggesting

the same in terms of directional bias, um,
it's a really wonderful opportunity and a

real sweet spot for you to be as a trader.

Okay.

The fundamental starting point, obviously.

Seen me teach this before, but it has
to be in here for completeness sake, a

quick and easy first step is to consult
the delivery month closing prices.

So you can go on the bar chart.com.

If you have access to like wall street
journal or investors business daily,

just look at the, uh, delivery contract
months and you can see the closing prices.

And what you'll be doing is you're
going to be noting any commodity

that has a premium over a distance.

And as the months go out again, they
should be more expensive, but if it

were reverses and it's more expensive
now this delineates, the premium

is in the nearby months, whereas
it should be in the distant months.

Uh, this will be our primary search.

Every year.

We go into the market place looking
for these conditions because

they are the common ingredient
for explosive bull markets.

Markets tend to have
longer periods of going.

And explosive price action.

When there's a premium, when there's
a lack of a premium, uh, it takes very

little time to drop in those markets.

But.

We're looking for conditions when the
market is predisposed to go higher and

we've already arrived at that by other
technical analysis that you'll learn

in your top-down analysis templates
in August, but I'm giving you the

general points in this teaching, how
to go about looking for mega trades,

because going to get a homework
assignment at the end of this teaching.

But premiums are going to be a
common denominator for explosive

vertical parabolic price
action moves that go higher.

Well, beyond higher than you've
ever imagined, the move would go.

Those are really fun to be a part of.

They can be scary the first few times
you get in, because you want to get

out everything in your being says, get
out, but you want to hold on to them

because they can go way farther than
you ever thought they were going to go.

Now we don't need a, or require a
premium to be in a bullish commodity

or to deem it a bullish commodity.

It merely adds to the likelihood
of a strong price rally.

In the sense that bull
markets are not all equal.

A commercial bull market is a market
that goes parabolically vertical

and they, they both can start off
the same where as a carrying charge.

Standard bull market where it goes
up, down, up, down typical stairway.

Uh, that's not what you see
in a commercial bull market

commercial bull market with a pre.

Where the nearby months are selling at
a higher price than a distant months.

They go parabolic and very quickly
cover a lot of ground and they

do so in short order very quick.

Um, it may take many months for a
long-term carrying chargeable market

to come to fruition or complete,
or go to a higher timeframe.

Objective, not when there is a
premium, it can do it extremely fast.

It can do it very energetically and.

Very fast and it's a very fun
market to be in when it's like that.

Okay.

Dollar based analysis.

Now, generally when the us
dollar is declining, this

allows commodity prices to rise.

And conversely, when the us dollar rises
this precious commodity prices lower.

Now I say this because
that's the general rule.

But general thumbs are always panaceas.

So there can, and will be periods
lasting as long as a year when commodity

prices and the U S dollar move in
tandem or in the same direction.

And there's no way around it.

I don't have a secret science behind
it where I can crack that code.

Uh, w you just got to accept
the fact that, you know, we

can never be 100% accurate and
therein lies the risks, uh, E.

Past performance isn't
indicative of future results.

We all knew this.

It's, it's spoken in all of
the disclaimers in anyone that

reads out their disclaimers.

You audibly.

They always say it.

The same thing, you know, past performance
is not indicative of future results.

Everything I'm sharing here now are
things that I've observed and picked up

over 24 years now coming up where there's
this a massive amount of probability.

For certain things to take place.

And while they are historically and
statistically proven that they are

likely to occur, does it not mean, or to
imply that you should put money on them?

Because I'm talking about here,
when you do these studies and

exercises, it's meant to stimulate
your overall general market aptitude.

But if you choose to trade on
these ideas with life funds,

that's entirely up to you.

I don't know.

You did the glory fourth, and
I surely don't want the shame

for it when it doesn't work.

I'm basically encouraging you to use
these tools and these concepts to build a

greater understanding of your price action
analysis and general market condition.

Okay.

Sector, group leaders, when
we are expecting higher

commodity prices in general.

We will seek to filter those markets,
that exhibit very bullish characteristics.

When we are expecting lower commodity
prices in general, we will seek to

filter those markets, that exhibit
very barest characteristics.

Now there can be opportunities to
be contrary and in either of the

conditions explained above, but
to keep things simple, we're going

to assume that we understand when
dollars are going to go higher when

the dollar's going to go lower.

And we're going to use that as our basis.

Yeah, there's other things you're
gonna learn in August to help you fine

tune a directional bias and also know
specifically what you're reaching for,

what concept, what type of trading pattern
should lend well in that condition?

But for now, I'm going to speak
in broad brush terms because

it will help build the idea.

When we go into August, those PDFs, you'll
have a little bit more understanding

and that gap will be bridged quicker
because of this teaching and this whole

entire month's teachings actually.

But if you look at this chart here,
it's a overlay that I actually created

to show what I'm going to show you
in the second slide after this one.

I want you to take a
look at the wheat market.

The wheat market is the, a little
bit darker line and the lighter

line is the soybean market.

So when we're looking for.

Commodities, the rally as a whole,
while the dollar index ideally should

be going lower or about the trade lower.

Um, that gives us a reason to anticipate
higher prices and commodities.

Now, while this isn't a mega trade per
se, um, this is how they start off.

So that's why I'm showing it to you.

And this is actually as of right now at
the time of this recording, uh, the first

week or so of July, 2017, uh, Fridays.

Shows us the price action here relative to
the wheat market and the soybean market.

Uh, I did not include corn.

And if you take a look at the corn
market, you'll see why, because it's

in a consolidation and these two.

Are a little bit more energetic
and we can actually see an example

of smart money accumulation.

So the dollar has been bearish.

So that means higher prices should
be expected in the commodity markets.

Not always, not a panacea,
but it should happen.

But under that pretense
that it may go higher.

We're going to be looking for
characteristics to support the idea

that the green markets should go higher.

And how can we do that?

We start going in and.

The relative lows across
the grain complex.

Obviously we have only
three grains to look at.

It's the soybean market, the corn
market, and the wheat market.

I have wheat overlaid with soybean.

Now you don't need to do this, but I do.

I'm doing it graphically.

So you can see what I'm referring to.

As you can see, the mid portion of
may going into the first week of June

wheat was unwilling to make a lower.

While the soybean market had
fallen off rather precipitously,

then both rallied a little bit
up into, around the 19th of June.

And then while both had a modest decline,
soybeans made a lower low, but the

wheat market failed to go lower and
you can see that happening in here.

So soybeans went lower.

We can see clearly here that wheat
is the stronger of the grain markets.

And as a result, the wheat market
rallied $6,500 per contract.

And the soybean market rallied
4,800 hours per contract.

There is a built in advantage to using
visual analysis like this because

it cuts to the core of whether smart
money's buying or selling again.

General principle is if they're going
to be institutions stepping in or

large commercial dominant users or
producers that are trying to buy a lot

or sell a lot of a specific commodity.

They're going to leave
telltale signs in price.

They have to, they can't hide it.

Their sheer volume is
going to create this crack.

Well, when we see this occurring, we
know there's a massive accumulation

going on in the green complex.

Now all three corn soybeans
and wheat can go up in tandem.

There's going to be a sympathy.

Play soybeans rallied significant.

That's nothing wrong with seeing
a $4,000 per contract move.

If you were long in that,
I would be mad about that.

Nobody.

But our job as an analyst and a developing
professional trader, we want to see

the characteristics that lead to us,
finding the strongest of the specific

commodity markets in a specific sector.

That way we ended up with a portfolio
of the strongest or the weak.

At that given time.

And here in this example, we can
clearly see that the concepts fared

it out the larger of the two and that
being wheat producing a $6,500 per

contract, move over again, a $4,800
move seen in the soybean market.

And here's those two
respective charts and stuff.

Can you see soybeans on the left, making
a lower low in June going into the last

week of June going into the beginning
of July and then wheat had already

been making higher lows and starting
to build up institutional order flow

all down closed candles are supporting
price in a bullish or block nature.

And short-term highs were starting
to break before the short-term highs

were seen in the soybean market.

So a lot of accumulation can be seen
in this chart than that, of the one

on the left, which is the soybeans.

So we was under a massive amount of
accumulation and you can see that

visually at the lows also noticed
that during the month of may, we had

a massive decline in open interest
while we was in a consolidate.

Then in June, we saw another
massive reduction in open

interest on two scales on wheat.

And then finally, when the bottom fell
out on the open interest of wheat going

into the last week of June, June going
into July, that's all that was necessary.

Price traded down into a bullish,
shorter block on a daily for wheat,

and then exploded and made another.

$1 move or 5,000 per, uh, per
contract for that, that mood is low.

It took only 1, 2, 3, 4, 5 of a week.

That a week it's worth the time
to being $5,000 per contract, who

is going to be arguing about that?

No, I don't want $5,000.

Don't don't you dare give me that.

Now the process in simple terms is as
follows what we're going to be dealing.

Is it going to be searching headlines
for commodities, any headline

that would spark an interest?

Uh, something like, um, uh, the grains
are in trouble because it's going

to be dry or there's too much rain.

Um, things of that nature of shortage
of, um, oil production, OPEC cuts

back or production, or there's.

Yeah, something's coming
aluminum in the middle east.

Well, that's going to effect oil prices.

And the next thing is his roommate
looking for Marcus to have premium.

Again, we don't need to have a market
premium, but if it does, we're focusing

primarily more on those particular markets
than that of a market that doesn't have

a premium and we're gonna be conferring.

What the dollar index for direction,
again, dollar up commodities

down dollar down commodities.

And we're gonna use relative
strengths in each sector comparing

Lowe's when we're bullish.

And we're looking for the one that
fails, like a lower load to be a buyer.

And we're going to be looking at
highs when we're bearish and we're

gonna be looking for a failure
swing or a marketed fails to make

a higher high when it's bearish.

And you can see heavy distribution
in that we're going to

filter each leader from eats.

And we're going to try to follow
one leader from each sector,

and we're going to use option
prices for paper trading also.

So if you think there's going to be higher
prices or lower prices, a new way you

practice it is go into the options chain.

And we'll talk about that in
August as well in great detail.

It will help you find opportunities
where even with folks that have very

small trading accounts, you can buy.

If you're bullish on commodities as a
whole, you can buy call options in just

about every one of the major sectors
and not spend a whole lot of money.

And you have controlled risk.

It's limited to what you
paid for the option premium.

Plus the commission.

Now, this is obviously a very basic and
very simplified overview that will be

refined in detail in August and the PDF
files for commodity top-down analysis.

I say it to you here, because
I want you to think like this,

build this mindset going in.

Because when we start talking about
those lessons in August, at least you

knew a general theme or process that we
work off of that there's other portions

and gaps that's intentionally left.

To be filled in when we get
into the PDF files for August

the commodity basket.

Now, now every commodity sector will
perform well and not every selected

leader will perform or outperform.

So due to the lack of perfection,
unfortunately, I can't bridge our

diversified approach in all the
sectors will in theory, increase

the odds of capturing a major
trade in one or more sectors.

Now, the magnitude and energy
seen in the winners will many

times cover the collateral damage.

The under-performance
will generate post trade.

Now let's assume for a moment you've
done the analysis and you've come to a.

That you think is going to outperform
all the others in that specific sector

for all the other sectors combined.

So, you know, you have a list of
specific commodities, what to do well,

the leaders, you can actually start
comparing them as well and see which of

those have much more relative strength.

For instance, if we're bullish, we've
gone through all the, uh, agricultural

sectors and we've gone through all
the financial sectors and we come to.

Bye list and we're bullish.

Um, we have our leaders on the upside
that we think is going to go up, but now

we can start looking at those respective
leaders on a comparative basis and see

if we're bullish, which one of those
commodities are starting to break highs

earlier than the others, because that
means you can really see professional

buying earlier than just the diversions
at the lows that you compared with.

The second.

Members of each respective sector.

In other words, if we're looking at the
green market and we fared it out, say

the soybean market happened to be the one
that failed to make a lower, low and corn.

And.

We were unsure or unclear
about what they wanted to do.

And it's clear that soybeans
was under accumulation.

Okay, fine.

We have soybeans out of that complex and
say we did the same thing for the meats.

Okay.

Or livestock, and say
that it was lean hogs.

That was the upside outperformer
that we expect to see.

We can look at the highs in relative terms
in the soybean market and in the, the

hog market and see which one of those.

Commodities, which one was breaking
out above short-term highs or

breaking highs, or basically bearish
quarter blocks before the other.

And which one is seeing much more
support at down candles or bull

shorter blocks, basically having
the strongest of the strongest.

Okay.

Basically whittling it down even
further, because that way, if you're

going to have a commodity basket, you
can start allocating more of your.

Okay.

Or if you're gonna be doing options,
you can be buying more options in

the strongest in your leader list and
still participate in the, in all the

sectors, but allocate more of your
money to the strongest of the strong.

In other words, it'd be in that
with say eight different leaders.

We don't want an evenly distributed.

Allocation of money.

We want to do more analysis and find out
which of these eight are in fact even

stronger than their respective peers.

So that eight could be finally,
you brought down to three

that are really outperforming.

So say the 50% of your investment
capital goes into those three and

the remaining portion that you was
going to allocate to this idea.

Then you would use that with the
remaining sectors and spread that out.

So that way you're, you're focusing
a lot more allocation in the

ones that are showing leadership
characteristics, but you're also

still participating in a diversified
manner and all the other sectors.

So you have one green, you have one,
uh, livestock, you have one metal,

you have one energy commodity.

You have one, uh, Or like coffee or
cocoa, one of those from that sector.

So you have a dabbling okay.

In all of the commodity sectors
as a whole, but you're really

allocated heavily in the ones that
have been visually shown to show.

Massive accumulation because
they're breaking highs and

they're failing to go lower.

So if we see that in comparison to all
the other sector leaders that you've

fared it out, it will build up a even
stronger likelihood that you're going

to catch her a nigga trade because those
outperforming or leadership commodities

that you've done analysis even further
on comparatively, you really have.

You know, fine tune it down to a point at
which we can see most likely the strongest

price moves for that calendar year.

All right.

The treasure seeker mindset.

Now some of you might feel perhaps this
is a lot of work to find a market move,

or maybe it might seem boring to sift
through charts for generic conditions.

From my first day, looking at the
annual big movers and listening to

the Larry Williams about 20,000 times.

Okay.

Playing his VHS cassette
course over and over again.

Um, I could hear him say that, you
know, he loves going through charts.

He loves it.

He loves million.

And I'm not sure if I was just being
programmed or prying because I looked

up to him and I heard him say that.

But either way I can tell you, I still.

I love, matter of fact, I love
doing the analysis and going through

and finding these types of things.

And I'm addicted to that.

It's to me, you know, since the very
first day I've likened it to treasure

hunting, it's like a treasure that
hidden that, you know, I have to

personally go into the charts and
find, and like most, anything else.

If you turn it into a
game, it makes it fun.

Every new calendar year
presents a new treasure hunt.

One of the things that helps keeps
me motivated is because I have

this mindset that I look at the
markets as that particular analogy,

like it's a treasure hunt, it's
a, it's a game it's hide and seek.

They are hiding something from me.

So therefore I'm going to do my best
to find out what it is they're hiding.

And I need to find it.

Find them being them
being the smart money.

I need to see what they're doing.

I need to be a tracker.

You know, I need to be following their
footprints and I needed to be a sniper.

I need to be stalking them.

You know, I need to be a fishermen.

I need to cast a line in the area where
I think they're going to be, you know,

biting and then maybe catch up on.

All those analogies are the
same way, whatever it takes

for you to find enjoyment out
of this, that's what it needs.

That's what needs to happen.

If you look at it as a daunting
task, or if you like, this is a lot

of work and even I don't want to, I
don't even want to trade commodities.

If you think that, then you're
going to hit a plateau in your

understanding and your analysis.

Even if you don't agree
with me now, trust.

You'll want to come back to this whole
month content because it's going to lend

well to your overall analysis because
you want to be finding these big moves.

It's one thing to be a position trader.

Okay.

But if you can find big moves,
that's going to happen in

magnitude and in short order.

And now it's real quick, fast moves.

Not that they complete real quick.

That has covered a lot of ground fast.

That's what these mega trades look like.

And I'm purposely avoiding a lot
of examples because I'm going to

have a live session with you, you
know, in the beginning of the week,

or I'm going to give you homework
to look for specific things.

And if I've wasted the exercise
here in the teaching, it, I see.

And Rob you of the opportunity of learning
by you, going into the charts yourself.

So I'm going to give you some insights
at the beginning of the week to

look for something and then we'll
go over it and reveal it again.

So your homework for now, because there's
going to be two homework assignments,

one because of this recordings lesson.

And then on Tuesday, I'll give you
another homework due for Thursday's recap.

Your homework is with
the benefit of hindsight.

I would like for you.

And I'm encouraging you to look
at 2016, study the big movers in

the commodity markets in 2016.

See if you can see these things that's
being described in this lesson, we're

going to be revealing 2000 sixteens,
examples, this coming Friday, and

I'm going to teach you how to go back
and look at previous data and old

charts to pull up the information.

Some of, you may not
know that, do that now.

That's okay.

Just look at a weekly chart.

Okay.

Go through all the commodities that's
been outlined here, and I purposely

kept the commodities that are currencies
and interest rate out because there

are going to be respective lessons in
this month as well, but we're going

to go through a live webinar or.

This coming Friday, we're
actually going to go through

all of the big movers from 2016.

But until then, I want you to go through
and find out as much as you can by way of

price action, which movers took place last
year, couple it with the dollar index.

Okay.

Whatever insights you can glean from
hindsight with the dollar, whether

they're going up or down, it's going
to be an inverse relationship that

you're going to be looking for.

And then.

Look for each sector's
bigger, biggest mover.

Okay.

And see if you don't see these
characteristics seen in those respective

sectors, and I want you to not be bored.

I don't want you to think about it.

Like, oh, this is not
going to lead to anything.

I'm a Forex trader.

I promise you, it will get you to another.

Level of understanding about what
the market's doing, why it's doing

this, because there's also going to be
currencies that do these types of things.

Right now.

We're just talking in general
terms about commodities as a whole.

I've removed the currencies as it's an
individual sector, I've removed the bond

market as its own individual sector.

I've removed the indices as
its own individual sector.

Okay.

So when we talk about.

Uh, you know, stocks, that's going to be
also a one, that's a lot of information,

but for this particular lesson, I want you
to look at all of the big moves that took

place in the year 2016 in the commodities
market, go through all the grains, which

are there's three corn, soybean and
wheat go through the meats, which is

live cattle, feeder, cattle, and lean.

Look at coffee, cocoa sugar,
orange juice, and, uh, cotton.

And look at gold and silver.

Look at heating oil, crude oil, and see
if you don't find nice big moose that

are very clearly shown by professional
accumulation or professional distribution.

By way of price action.

And you simply using the dollar index.

Now, again, we're going to build on this
in August when I give you a step-by-step

procedure, where you go through each
thing to look at, and if it doesn't have

any information, you're going to wait
for more information, or it may take you

to go back to the previous stage and you
wait, and you're gonna find that there is

a methodical approach to doing all this
stuff where it seems fragmented, right?

That's okay, because I'm, I'm leaving
things for your discovery that you'll

find in your actual exercises and
like this homework while you're going

through and looking at it, invariably,
some of you are going to not come away

with anything fruitful and that's okay.

Because when we do the live
session and I break it down,

you'll be like, okay, I got it.

Some of you will be pleased to see
that you see the same thing that I'm

going to pull out in our live session.

And that will be a, another milestone for
your confidence and your, and your growth.

But even if you think you're never
going to trade commodities, and that

may be true, and I'm not trying to
twist anybody's arm here, uh, the trade

commodities go through this process, go
through this procedure because I promise

when you do it, it will build a greater
understanding about the market price

action as a whole, and you as a trader.

So get into those treasure maps or.

Price charged as we call them and find
these big moves that took place in 2016.

And we'll talk about them in a
live session this Friday coming up.