Thursday, April 27, 2006

Traders Helping Traders Daily Update for Tuesday April 25, 2006

Market Update for Tuesday, April 25, 2006
"It is often hard to distinguish between the hard knocks in life and those of opportunity." ~Frederick Phillips

1: CURRENCIES

June Australian Dollar ADM6
Nothing has changed for the AD today so we'll continue to run the weekend plan to buy above the strong weekly resistance tomorrow.

*BUY June Australian Dollar at 7477
*Exit Stop: 7439
*Approximate Risk: $380 per contract
*Profit Target: 7597
*Potential Profit: $1200 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH

June British Pound BPM6
I thought the Pound would retreat a little more, but right now the market is honouring last week's support. Therefore I'll look to buy the market higher on a break of last week's high and cover at the strong support at 179.00.

*BUY June British Pound at 179.77
*Exit Stop: 178.97
*Approximate Risk: $500 per contract
*Profit Target: 182.87
*Potential Profit: $1937 per contract
*RRR: 3 1/2:1
*Degree of Risk: HIGH

June Canadian Dollar CDM6
Not an ideal setup for the Canadian Dollar either; however we do have notable resistance over the last few sessions at 8825 - 8830. It is a channel formation which could go either way, but I'll stick to the trend side for now. The profit target is pure speculation as we'd be trading off the charts if the rally continues.

*BUY June Canadian Dollar at 8833
*Exit Stop: 8795
*Approximate Risk: $380 per contract
*Profit Target: 8997
*Potential Profit: $1640 per contract
*RRR: 4:1
*Degree of Risk: HIGH

June EuroFX ECM6
Same set up in the EC today as the other markets. There's plenty of dollar risk here. Only trade this one if you're comfortable risking this much money.

*BUY June EuroFX at 124.61
*Exit Stop: 123.99
*Approximate Risk: $775 per contract
*Profit Target: 126.89
*Potential Profit: $2850 per contract
*RRR: 3 1/2:1
*Degree of Risk: HIGH

June Japanese Yen JYM6
Huge rally and gap by the Yen today. Not trading this one tomorrow for sure!

June Mexican Peso MPM6
Things aren't looking so hot for our Peso trade as the market failed to break last week's support. Bring your stops in above today's high to be safe.

June Swiss Franc SFM6
A similar set up in the SF today; however support and resistance are too far away to give us a good RRR. I'm just watching here tomorrow.

June US Dollar Index DXM6
The USD already led the way today breaking last week's support. I thought we'd have a little more time here, but we didn't. On hold at the moment.

2: ENERGIES

June Unleaded Gas HUM6
Unleaded's still holding the resistance line so we'll run the same trade again.

*BUY June Unleaded Gas at 223.10
*Exit Stop: 220.95
*Approximate Risk: $903 per contract
*Profit Target: 239.45
*Potential Profit: $6867 per contract
*RRR: 7 1/2:1
*Degree of Risk: HIGH

June Heating Oil HOM6
That was almost a little too close for comfort as Heating Oil came very close to whipsawing us! Run the weekend trade again tomorrow.

June Crude Oil CLM6
We could buy above Crude's resistance but I'm going to hold off on this one tomorrow. If it trades slightly lower (which I think it might) we'll look for a better spot to buy from.

3: FINANCIALS/INDICES

December (06) Eurodollar EDZ6
Not the most encouraging day for the Eurodollar either. Bring your stops in above today's high for tomorrow.

June mini-DOW YMM6
Still watching.

June mini-NAS NQM6
And waiting.

June mini-S&P ESM6
Watching and waiting.

4: GRAINS

July Corn CN6
Very close call in corn today. I'm pulling the trade for tomorrow, but it does look like the market is determined to head lower.

July Oats ON6
Oats are heading to the top of the trading range. It will be interesting to see if we finally get a breakout (I think we might).

July Rice RRN6
Rice is still sideways bound. Nothing here until we get a stronger trend.

July Soybean Meal SMN6
Ditto for Soy Meal. I'm tired of second guessing this market.

July Soybean Oil BON6
Nice reversal in Bean Oil. One more session like this and we can plan another buy. This is likely a profit taking move.

July Soybean SN6
We got gapped on the open, voiding our trade. I don't know if this was a solid move or not. We'll have to see how it plays out.

July Wheat WN6
Wheat retreated from resistance today, but I still like the buy scenario for tomorrow.

*BUY July Wheat at 370 1/4
*Exit Stop: 363 3/4
*Approximate Risk: $325 per contract
*Profit Target: 390 3/4
*Potential Profit: $1025 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH

5: MEATS

May Feeder Cattle FCK6
Big smiles after today's move in Feeders! Bring stops at least above today's high for tomorrow. You could also use the resistance at 100.50 if you wanted something tighter.

June Live Cattle LCM6
No problems with our Cattle trade either. Bring stops at least to breakeven for tomorrow.

June Lean Hogs LHM6
I thought Hogs might reverse today after last week's rally; however we still don't have much of a trend to work with here.

6: METALS

May Copper HGK6
I'll probably regret this, but I'm going to give copper one more day before I try to buy it again. Hope I don't get caught holding the bag.

June Gold GCM6
Gold continues to be a little more subdued. I'd like to see something around 618 before I try another buy.

May Silver SIK6
Silver's still WAY TOO DANGEROUS. No thank you.

7: SOFTS

July Cocoa CCN6
Cocoa's still lost, but it's fun to watch.

July Coffee KCN6
RSI broke the trendline today so we could see something lower tomorrow, but I'll run the weekend trade again.

July Cotton CTN6
Cotton's being pretty decent about the recent decline. Bring stops in above Friday's high for tomorrow (or tighter).

July OJ OJN6
I'm wondering if OJ's putting in a top. Looks like it has found a #3 point today.

July Sugar SBN6
Yeah...whatever.