Traders Helping Traders Daily Update for Thursday, July 21, 2005

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Erich's Update for Thursday, July 21, 2005
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1: SEPTEMBER CORN
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CU5 O=2 HI=4 1/4 LO=8 CL=1 1/2

Corn stalled out today, but not as neatly as beans or wheat did. I might expect a rally tomorrow off this support however it is a bit of a long shot. I'll consider buying above today's high, but I'll be quick to cover the trade if it reverses.

I'll reserve selling until we get below the 235 support.

*BUY September Corn at 245 1/4
*Stop 240 3/4
*Approximate Risk Exposure: $225 per contract
*Profit Target: 264 1/4
*Approximate Profit Potential: $950 per contract
*RRR: 4:1
*Degree of Risk: Moderate to HIGH
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2: DECEMBER COTTON
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CTZ5 O=92 HI=45 LO=36 CL=89

All our hard work only picked us up $185 in profit as cotton stalled today. I might expect a bit of a reversal in light of the wishy-washy session, but I'll just be watching tomorrow.
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3: DECEMBER BEAN OIL
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BOZ5 O=48 HI=00 L=38 CL=97

Bean Oil didn't make as nice a bounce off the trendline as the bigger soybean contract did. In fact there's not a whole heck-of-a-lot of support here to justify any reaction, at least not on the daily. The weekly chart shows a little more support...but I'm not sure I want to buy just yet.

If we see a higher session tomorrow I might try to get long before the weekend, but right now I'm just going to watch.
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4: AUGUST LIVE CATTLE
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LCQ5 O=30 HI=85 LO=05 CL=42

Not a pretty day in cattle as prices continued to pullback. I'm going to tighten my entry parameters to look at selling below today's support. There's a cattle report due out Friday which is likely to affect where prices are heading next, but I'll continue to look to sell for the time being.

*SELL August Live Cattle at 7892
*Stop 7952
*Approximate Risk Exposure: $240 per contract
*Profit Target: 7607
*Approximate Profit Potential: $1140 per contract
*RRR: 4 1/2:1
*Degree of Risk: Moderate to HIGH
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5: SEPTEMBER COCOA
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CCU5 O=30 HI=43 LO=01 CL=04

Big move to the downside in cocoa would have taken you out of any long positions you still had in this market. Did you notice the high? Yep, right on the 1445 resistance. This is obviously a very strong resistance area and while I would prefer to sell, I'll entertain a buy on a break above here.

*SELL September Cocoa at 1394
*Stop 1411
*Approximate Risk Exposure: $170 per contract
*Profit Target: 1331
*Approximate Profit Potential: $630 per contract
*RRR: 3 1/2:1
*Degree of Risk: Moderate

OR

*BUY September Cocoa at 1451
*Stop 1433
*Approximate Risk Exposure: $180 per contract
*Profit Target: 1507
*Approximate Profit Potential: $560 per contract
*RRR: 3:1
*Degree of Risk: Moderate
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6: SEPTEMBER WHEAT
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WU5 O=34 1/2 HI=38 LO=31 CL=33 1/4

Wheat found support at 331, right where we were looking. This is also a trendline and RSI testpoint, so we should expect a reaction here tomorrow. I'll look to buy wheat long on a break of today's high and will reserve selling short until we get a trendline break.

*BUY September Wheat at 339 1/4
*Stop 335 1/4
*Approximate Risk Exposure: $200 per contract
*Profit Target: 356 1/4
*Approximate Profit Potential: $850 per contract
*RRR: 4:1
*Degree of Risk: HIGH
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7: SEPTEMBER CANADIAN DOLLAR
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CDU5 O=36 HI=44 LO=77 CL=01

Yuck! What an ugly day in the CD today. Given today's bearish posture it looks like we might see a test of 8160 after all...but I'm not holding my breath. I'll keep an eye on this one, but we need to see it testing some serious support or resistance before we get involved.
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8: SEPTEMBER SILVER
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SIU5 O=8.5 HI=1 LO=7.5 CL=6.8

Silver did take a bullish breakout from the sideways channel that had formed over the last few days. I was just watching though as I'm still pretty choked with this market.

Expect prices to head higher...but I'll still be watching.
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9: JUNE EURODOLLAR
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EDM6 O=.76 HI=.76 LO=.665 CL=.72

The ED took another run at our stops today, but came up just a little short. One thing's for sure, covering at the 95.765 line is the right thing to do. We're currently at breakeven, and I'd dearly love to see the resistance hold; however I'm not holding out too much hope after today's session.

First support target is 95.55.
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10: WILD CARD
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No wild card market - yet.
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