Traders Helping Traders Daily Update for Thursday, February 10, 2005

==================================================
PART ONE: Erich's Trades for Thursday, February 10, 2005
==================================================
The Subscribers got this on Wednesday Night. The Test Drive version is posted the day AFTER for tracking and educational purposes only. Enjoy!

"When prosperity comes, do not use all of it." - Confucius

==================================================
1: MARCH CORN
==================================================
CH5 O-4 1/2 HI-5 3/4 LO-4 1/2 CL-5

[YAWN!] Nothing new in corn today - again. This is almost getting to be too much to bear. Prices want to go higher, but can't. They should go lower, but won't.

Sticking with the weekend sell tomorrow.

*SELL March Corn at 193 3/4
*Stop 196 1/4
*Approximate Risk Exposure: $125 per contract
*Profit Target: 184 3/4
*Approximate Profit Potential: $450 per contract
*RRR: 3 1/2:1
*Degree of Risk: Low

==================================================
2: MARCH COTTON
==================================================
CTH5 O-05 HI-06 LO-65 CL-70

Cotton recovered slightly off the 4260 support today as buyers recognized this to be a good price level. Still looking for a test of 4200 before selling; however I think we could see a continued push higher tomorrow.

Standing aside for now.

==================================================
3: MARCH BEAN OIL
==================================================
BOH5 O-15 HI-25 LO-07 CL-15

Bean Oil held the yesterday's resistance today. I'm thinking that prices might rally higher tomorrow, but with all that resistance at 1940 and 1950 I'm can't put together a decent trade, so I'll have to stick with the weekend sell for now.

*SELL March Bean Oil at 1897
*Stop 1926
*Approximate Risk Exposure: $174 per contract
*Profit Target: 1761
*Approximate Profit Potential: $816 per contract
*RRR: 4 1/2:1
*Degree of Risk: Moderate

==================================================
4: ARPIL LIVE CATTLE
==================================================
LCJ5 O-65 HI-85 LO-10 CL-12

Got the reaction we were looking for today as prices fell off to the trendline. I guess the decline was spurred on by the news that the US border will reopen to Canadian beef imports in a couple of weeks, and as such traders envision an abundance of supply around the corner.

Regardless of the "funnymentals" I'm looking to sell below today's low. Bear in mind selling below a breakout below today's support would be safer; however that will mean entering the trade on a Friday - which I'd rather not do.

*SELL April Live Cattle at 87.975
*Stop 88.425
*Approximate Risk Exposure: $180 per contract
*Profit Target: 86.575
*Approximate Profit Potential: $560 per contract
*RRR: 3:1
*Degree of Risk: Moderate

==================================================
5: MARCH COCOA
==================================================
CCH5 O-90 HI-98 LO-30 CL-34

"RSI is at a test point, and while I would normally look at selling from here, I'm going to wait for a confirmation tomorrow" - hmmm, I guess I should have sold it anyway. ;-)

Cocoa took off on us today. Too bad, since we had the right idea about this market. Would love to sell it again tomorrow, but I think the 1515 support is going to get in the way.

Next support reaction we'll be all over this market.

==================================================
6: MARCH WHEAT
==================================================
WH5 O-2 1/2 HI-3 3/4 LO-9 1/2 CL-0

More of the same from wheat today as prices didn't do too much except continue to test support. We'll likely see higher prices soon; however with all the resistance above the market I can't bring myself to buy just yet.

Sticking with the weekend plan tomorrow, but I don't expect to get filled.

*SELL March Wheat at 295 3/4
*Stop 289 3/4
*Approximate Risk Exposure: $200 per contract
*Profit Target: 266 3/4
*Approximate Profit Potential: $950 per contract
*RRR: 4 1/2:1
*Degree of Risk: Moderate

==================================================
7: MARCH CANADIAN DOLLAR
==================================================
CDH5 O-99 HI-15 LO-85 CL-01

Notice today's high and close? Right back to the 8017 resistance from the long term charts and the round numbers at 8000. I thought seriously about selling the CD tomorrow below the 7985 support, but it would be a risky trade. Alternatively I'll wait for confirmation before selling again.

==================================================
8: MARCH SILVER
==================================================
SIH5 O-5.5 HI-1 LO-9.5 CL-9

Silver surprised me a bit today as we got stopped out at breakeven. That wasn't the surprise however. The surprise was that prices stayed below the 662 resistance. I thought for sure we would see a rally above there today but it didn't happen.

Watching RSI for a test of the trendline to cue our next sell order - but nothing for tomorrow.

==================================================
9: DECEMBER EURODOLLAR
==================================================
EDZ5 O–.26 HI–.365 LO–.255 CL–.36

Big day in the ED today as rates rallied to the top of the trading range, stopping us out for a $65 loss in the process. While I'm reluctant to buy this market it continues to show us support at 9626, so selling is becoming more difficult as well.

I'd like to see it clear 9640 before getting too serious about buying however.

==================================================
10: WILD CARD - ARPIL LEAN HOGS
==================================================
LHJ5 O-70 HI-50 LO-70 CL-77

Hogs made a run for it today before getting stomped on from nearby resistance. Tomorrow could be our second chance at this market that gapped us the week prior before running straight to our profit target.

Looking to sell a break of today's low and cover the trade above the intermediate resistance at 7400. First profit target is 7135 but I think prices could go lower still.

*SELL April Lean Hogs at 73.575
*Stop 84.025
*Approximate Risk Exposure: $180 per contract
*Profit Target: 71.375
*Approximate Profit Potential: $880 per contract
*RRR: 4 1/2:1
*Degree of Risk: Moderate

==================================================
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 1-800-870-3327. You can also reach him via email at Admin@OptimusFutures.com

================================================
PART TWO: "Tom's Trades" for Thursday, February 10, 2005
================================================
================================================
1: MARCH 30 YEAR T BOND
================================================
USDH5 O-6-13 HI-7-06 LO-6-12 CL-6-24

The open was the retest of 117-00 we sought. I sold 116-27. The ride south was swift from there. We barely had time to roll stops before we were at 116-16. I took what I could get at 116-17 for a 10 tick winner, $312. After the brief foray down to -10 where I did a breakeven sell of -15 we started the climb north again. It was just almost a picture perfect buy off the break back above -16. There was a pullback from -26 to -21 that probably would have stopped us out at B/E or close to it. I watched but stayed on the sidelines.

We settled at 117-07 still exhibiting some upside power. The structure is building but no where near enough to get comfortable with the full array of trades. For tomorrow I will sell a break below 117-00 much as we did today and yesterday.

===============================================
2: MARCH EURODOLLAR
===============================================
EDH5 O—.025 HI—.035 LO—.020 CL—.030

We inched a teeny bit higher, still nothing tradable. Keep the eyes on the TT numbers.

===============================================
3: MARCH CANADIAN DOLLAR
===============================================
CDH5 O-99 HI-15 LO-85 CL-01

We opened with a little bit of a gap down. It got very choppy and unpredictable I watched for a while and said "no thanks". Just too, too much goofiness to risk anything.

TT numbers for tomorrow again. Make it prove itself before jumping in. Be very cautious of the chop, if it surfaces again, just leave it be until it smoothes out some.

===============================================
4: APRIL GOLD
===============================================
GCJ5 O-3.30 HI-4.80 LO-1.50 CL-4.50

I bought 1 at 412.10. Not the optimum fill by any stretch but it was the only thing available after the confirmation. We started getting close to EOD so I took what was on the table exiting at 413.80 for a small winner, $170. We probably won't see anything playable tomorrow as the end of day move was pretty bullish.

$10 channel for tomorrow, gang.

===============================================
5: MARCH COTTON
===============================================
CTH5 O-.70 HI-.70 LO-.61 CL-.07

I should have treated 42.61 as a test of 42.50 and bought it right after the open. I didn't. I waited for ther break of 43.00 andbought 1 at 43.05. I brought my stop to 43.57 as we touched 43.70 and was stopped out at 43.55 picking up 50 points, $250. After that we came right back down to 43.00 closing at 43.04.

Same TT numbers for tomorrow.

===============================================
6: MARCH COCOA
===============================================
COH5 O-90 HI-98 LO-30 CL-34

After about an hour of watching Cocoa beating itself half to death on 1600 to 1595 I sold 1 at 1595 hoping it would go somewhere before it got too late. About an hour prior to the close we finally got some movement. It pulled up pretty sharply, as one would expect, at 1560. I exited there just in time to see it fall another 30 points. I'll take my $350 and bite my tongue.

All the same TT numbers plus the 1560 trade from yesterday's update. With the close at 1534 we are obviously hoping to see 1520 and a following failure at 1520 tomorrow.

===============================================
7: MARCH CORN
===============================================
CH5 O=1.94 1/2 HI=1.95 3/4 LO=1.94 1/2 CL=1.95

I bought 1.95 1/2 again today with a 1.94 1/4 stop. Night action seems to say we did good ... we'll see tomorrow. Remeber this about scalping.

===============================================
8: MARCH WHEAT
===============================================
WH5 O=2.92 1/2 HI=2.93 3/4 LO=2.89 1/2 CL=2.90

I left the Wheat alone today. It really never got to any of our numbers. We settled near the lows of the day at 2.90 even. I'll be looking at the 2.88 deal from TT tomorrow.

===============================================
The Daily Updates is a publication of Traders Helping Traders.net

http://www.tradershelpingtraders.net
tom@tradershelpingtraders.net

Copyright (c) 2002-2005 Traders Helping Traders.net.

204 Cowichan Avenue East Lake Cowichan,
British Columbia, V0R 2G0
(250)749-4191 (Pacific Time Zone)
===============================================
RISK DISCLOSURE!

Trading commodity Futures and options on futures involves significant risk. You must consult licensed professionals or your own advisors before trading to determine if it is suitable for you.

Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. You must consult your broker or advisor before making any trade to insure current prices, margin requirements and other factors determinant to suitability. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers. You agree before doing any trade contained herein to consult your charts and advisors to verify all information and make your own decision.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

For example, the ability to withstand losses or to adhere to particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.

There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
===============================================