Ep. 370: Instruments vs. Strategy with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Importance of Fundamental Analysis in Commodities
In 1970, its first year, Commodity Corporation lost $100,000. At a board meeting Weimar and Vaynerson proposed diversifying by developing a technical trading system. How Commodities price changed yesterday, they contended, tells an investor nothing about how it will perform tomorrow. Amos Hostetter sided with Weimar, the trader Weimar affectionately referred to as our 70 year old guru is basically a fundamentalist. But he also followed price patterns. When he decided that a market's supply and demand prospects looked good, he put up one third of his ultimate position.
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