Wednesday, May 25, 2005

Traders Helping Traders Daily Update for Tuesday 5-24-05

==================================================
Erich's Update for Tuesday, May 24, 2005
==================================================
"Life shouldn't be printed on dollar bills." - Clifford Odets
==================================================
1: JULY CORN
==================================================
CN5 O=9 HI=5 LO=9 CL=4 1/2

Gee, do you think corn's looking a touch bullish? Corn prices rallied on a huge gap this morning nixing our buy order in the process. I hate it when that happens!

We had this market cornered and then prices took off like a shot. Probably see corn continue higher tomorrow, but I'm not comfortable buying in after today's gap. With a little bit of luck we'll see some resistance form.
==================================================
2: JULY COTTON
==================================================
CTN5 O=10 HI=05 LO=10 CL=27

Cotton has temporarily regained it's grip on reality as prices stalled on the 5000 - 5010 support today. What I would really like to see is a bit of a profit taking pullback to make selling the market a little easier. I'll hold off and see if prices don't head higher tomorrow. Look for possible resistance as high as 5250.
==================================================
3: JULY BEAN OIL
==================================================
BON5 O=65 HI=02 LO=63 CL=68

Bean Oil prices rallied today, probably spurred higher by the huge rallies in wheat and corn. There is resistance above the market at 2340 that is likely to be a trouble spot, so I'll wait for a test there before trying to sell again.
==================================================
4: JUNE LIVE CATTLE
==================================================
LCM5 O=25 HI=35 LO=55 CL=60

Tough day in the cattle market. We pegged the downside move perfectly; however the opening gap might have kept you out of the trade. If you checked back in after opening range you could have gotten on board; however for the rest we have to look for the next entry opportunity. If you are short bring exit stops at least to breakeven for tomorrow. First downside target is support at 8317.
==================================================
5: JULY COCOA
==================================================
CCN5 O=57 HI=63 LO=52 CL=59

Cocoa prices didn't do much today as the market got a little closer to the 1470 resistance. I am expecting a reaction here tomorrow, and hopefully it will be a moderate one. Run the weekend trade for tomorrow; however we probably won't get filled.
==================================================
6: JULY WHEAT
==================================================
WN5 O=18 HI=39 LO=18 CL=33 3/4

Thank goodness the wheat market didn't gap our order like the cattle market did...that would have been too much in one day!

Wheat prices did everything we hoped and more today as the market found our entry and first profit target in a single session! If you didn't take profit on target then you probably want to bring stops in to the 331 area, which was intraday support. If you missed this move today, don't worry...we'll have another crack at it in a couple of days.
==================================================
7: JUNE CANADIAN DOLLAR
==================================================
CDM5 O=22 HI=65 LO=21 CL=54

The Canadian Dollar rallied a bit today moving away from the weekend's selling order. I'd consider buying the market but we've got some serious resistance just above it at 7980. The US Dollar looks like it's poised to decline which will help send the CD higher, but I just can't bring myself to buy it right now.
==================================================
8: JULY SILVER
==================================================
SIN5 O=7 HI=3.5 LO=5 CL=7

I'm not quite sure what to make of silver's range today. Prices continued to test the 695 support line without breaking through. The US Dollar is looking weaker again and this in turn could send the silver market rallying. Think I'll just pull the trade for tomorrow until we get a better signal.
==================================================
9: MARCH EURODOLLAR
==================================================
EDH6 O=.925 HI=.01 LO=.925 CL=.985

Got stopped out of the Eurodollar today as rates bounced off trendline support. We should see the market head higher tomorrow, but to tell the truth I'm still not that comfortable buying below the 9610 resistance. Maybe we'll give it another day.
==================================================
10: WILD CARD
==================================================
No wild card market for tomorrow.
==================================================
RECOMMENDED BROKER
==================================================
If you are looking for a broker that understands the recommendations and could help you place them, call Matt Zimberg at his toll free trading desk at 1-866-658-7815 [or (561)282-6848]. You can also reach him via email at [email protected]