Traders Helping Traders Daily Update for Wednesday July 6, 2005

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Erich's Update for Wednesday, July 6, 2005
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Our Tom is in a lot of pain and won't be able to do his updates for a few days. We wish him a speedy and complete recovery!

"Only losers play ever hand of poker." - Tom Loge'
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1: SEPTEMBER CORN
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CU5 O= 1/2 HI= LO= 1/4 CL=

Goofy corn market took off like a rocket today after the three day break. Makes you wonder about bracketing the market after a long weekend 'cus you know the move's going to be a biggie - regardless of the direction.

Maybe next time. Nothing here tomorrow. At least not until the dust settles.
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2: DECEMBER COTTON
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CTZ5 O=0 HI=0 LO=0 CL=7

So much for divergence in cotton, as cotton prices restarted the uptrend today after a brief hesitation. Problem with this market is that I have a pretty good idea where it is going (5870) but where do we get in without getting clobbered?

Still watching.
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3: DECEMBER BEAN OIL
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BOZ5 HI=0 LO=5 CL=0

Looks like the holiday hang-over spilled into the bean pits today as well. We called the market direction quite nicely; unfortunately the big opening gap nixed any chance at a trade here today.

Probably see prices continue to rally tomorrow, but I'll just be waiting for the next buying opportunity.
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4: AUGUST LIVE CATTLE
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LCQ5 O=0 HI=0 LO=0 CL=5

Relatively strong day in cattle today as prices bounced a bit off support. We're at another RSI testpoint, the fourth one, which means we could see a bounce and higher prices in the next few days.

A retracement to 8300 is likely; however I'm a little concerned about the resistance at 8015, which is a fairly respectable level; therefore I might just run with the weekend trade tomorrow, although I do think prices will rally.

*SELL August Live Cattle at 7887
*Stop 7942
*Approximate Risk Exposure: $218 per contract
*Profit Target: 7612
*Approximate Profit Potential: $1100 per contract
*RRR: 5:1
*Degree of Risk: Moderate to HIGH
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5: SEPTEMBER COCOA
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CCU5 O=0 HI=8 LO=5 CL=0

Interesting...cocoa gave us a pretty good test of the 1430 support line; however the low closing price would give the market a slightly bearish tone going into tomorrow.

I'm actually looking for the bears to bail at this point and would like to see another test of the support level before we put a trade together.
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6: SEPTEMBER WHEAT
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WU5 O=7 3/4 HI=1 1/2 LO=7 CL=6 1/2

Wheat prices took a big bounce off the RSI trendline today. The market rallied all the way to the resistance at 350 before backing off slightly.

It seems that prices are likely to continue higher again; however we might see a bit of an adjustment tomorrow as the last minute traders try to jump on board.

Think I'll just wait another day before committing.
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7: SEPTEMBER CANADIAN DOLLAR
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CDU5 O=6 HI=1 LO=8 CL=1

Hmmm....what support level were we watching from the ezine, 8040? Pretty close, huh? ;-)

Okay, the CD tested the support area today, now the big question is will it bounce? Part of me wants to buy the market above today's high, and the other part is telling me to be more cautious and wait for a confirmation before getting in.

Don't want to start the month on a bad note...guess I'll wait for confirmation tomorrow.
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8: SEPTEMBER SILVER
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SIU5 O= HI=.5 LO= CL=

No real surprise here as silver continued to test the support on the neckline of the rounded bottom formation. I would expect prices to rally a bit actually, and try to test resistance at 720 before falling off again.

This is a touch optimistic mind you, but if we get a decent set up tomorrow I might consider a countertrend trade in this market.
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9: MARCH EURODOLLAR
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EDH6 O=865 HI=875 LO=835 CL=85

Small day in the Eurodollar, but enough to find our profit target at 9584.5 allowing us to bank $450 per contract.

Expect the market to channel for the next little while as it struggles with the support area. Once we get a better idea of the range we'll look at selling it again.
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10: WILD CARD
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No wild card market - yet.
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