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Softs Overview
Video clip covering this week's Softs trades posted at the
site.
Some big moves in the Softs last week, but not much we could take advantage
of. I thought about buying Lumber earlier in the week, and given the big
moves before the weekend it would have been a nice call; however the
thinness of the market and the long weekend combined to scare me off. Cocoa
is still too nutty for me to trade and OJ is a close second, although we
could get a nice trade setup for OJ later this week.
Sugar is looking for direction and might give us a reversal pattern. Cotton
might already have given us a reversal and is definitely looking bullish.
Coffee might follow Cotton's lead, but hasn't moved too far yet.
Coffee
BUY July Coffee at 114.65
Exit Order: 112.65
Approximate Risk Exposure: $750 per contract
Profit Target: 120.95
Approximate Potential Profit: $2362 per contract
RRR: 3:1
Degree of Risk: Moderate to HIGH
I would inform the broker as follows: Please execute the following trade for
my account:
If July Coffee opens at or below 114.60:
BUY one (1) July Coffee at 114.65 (stop)(day) If filled place protective
stop at 112.65 (GTC)
Energies Overview
The Energy markets were a little more subdued last week, well, for the most
part. The floor fell out of Natural Gas, but we're not usually trading this
market because of the extreme ranges, so it didn't really affect us that
much. Heating Oil stalled out and is still a tempting trade, but I'm not
convinced I want to bite yet. Crude seems poised to head lower for the short
term, but there's considerable support at Thursday's low (July) which could
mess up a selling attempt.
PS. I'm surprised that no one took me up on my challenge to point out a
possible trade in Heating Oil. The trade's still there so we might run it as
this week's homework.
FLAT Energy Complex Metals Overview
The video clip covering this week's Metals trades has been posted to the
site.
I actually considered shorting Copper last week on the break through the
support at 324.00 (July) but after seeing how it snapped back on Friday I'm
glad I didn't risk it. That's the problem with these big ranging metal
markets, they can back up on you in a big (ie. scary) way in a hurry.
Personally I think all three metals are positioned to head lower this week,
especially if the USD and stocks remain strong. This in turn should lead
less interest in things like Bonds and precious metals like Gold and Silver.
And while Copper is primarily demand driven, it does have a tendency to sync
up with Gold and Silver most of the time.
Gold
SELL August Gold at 655.4
Exit Order: 662.6
Approximate Risk Exposure: $720 per contract
Profit Target: 621.7
Approximate Potential Profit: $3370 per contract
RRR: 4:1
Degree of Risk: Moderate to HIGH
I would inform the broker as follows: Please execute the following trade for
my account:
If August Gold opens at or able 655.5: SELL one (1) August Gold at 655.4 (stop)(day)
If filled place a protective stop at 662.6 (GTC)
The charts in this publication are
all made using Gecko's Track 'n Trade charting software. You can get a
demo for free here.
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