Traders Helping Traders Daily Update for Thursday July 7, 2005

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Erich's Update for Thursday, July 7, 2005
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Our Tom is in a lot of pain and facing surgery this week, so there will not be an update from him for a few days.

"Only losers play every hand of poker." - Tom Loge'
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1: SEPTEMBER CORN
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CU5 O=0 1/2 HI=2 3/4 LO=8 1/2 CL=9 3/4

Corn put on the brakes today as prices weren't able to trade above yesterday's high. The market is looking very bearish for tomorrow, but is still technically in an uptrend.

A lower session tomorrow will confirm the resistance however and *might* get us looking short before the weekend. Likewise a higher session could get us to buy.
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2: DECEMBER COTTON
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CTZ5 O=55 HI=75 LO=93 CL=96

A bit unexpected move in cotton today as prices moved rather sharply to the downside. RSI is at a testpoint and very bearish for tomorrow. The only problem I have is selling a technically bullish market. We might run into problems at 5400, but you could sell the support if you wanted.

*SELL December Cotton at 5467
*Stop 5516
*Approximate Risk Exposure: $245 per contract
*Profit Target: 5261
*Approximate Profit Potential: $1030 per contract
*RRR: 4:1
*Degree of Risk: Moderate to HIGH
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3: DECEMBER BEAN OIL
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BOZ5

A rather weak day in the bean oil market. Again the biggie Bean contract looks more bearish than the oil market; however prices are still in an uptrend so we can't get too aggressive selling - yet.

Standing aside for tomorrow. We should get a better idea of where prices want to go on Thursday.
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4: AUGUST LIVE CATTLE
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LCQ5 O=50 HI=95 LO=35 CL=62

Cattle is calling my bluff as prices continue to contend with the resistance at the 8115 area. Prices are barely into bullish territory now, so I might look to buy some cows if we see a break of the resistance.

*SELL August Live Cattle at 8122
*Stop 8067
*Approximate Risk Exposure: $220 per contract
*Profit Target: 8297
*Approximate Profit Potential: $700 per contract
*RRR: 3:1
*Degree of Risk: Moderate
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5: SEPTEMBER COCOA
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CCU5 O=20 HI=30 LO=07 CL=11

Cocoa testing the 1420 support line again today, and actually broke it. I was expecting to see a bit of a reaction here, and now that we didn't get it I'm very suspicious of tomorrow's session.

Might see today's reaction tomorrow - so we'd best stand by.
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6: SEPTEMBER WHEAT
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WU5 O46 1/2 HI48 LO41 1/2 CL42

Wheat bailed off the 349 resistance today. Prices were unable to better yesterday's high which makes me a bit suspicious of yesterday's rally. We could see wheat fall off a bit tomorrow, which would confirm the resistance and put us in a position to sell again.
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7: SEPTEMBER CANADIAN DOLLAR
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CDU5 O=61 HI=12 LO=58 CL=95

Good bounce off the support level today, just as we hoped we'd see. I guess it's time to put up or shut up, isn't it? We've got strong resistance at 8110 - 8115 which we should clear before committing to the trade. I'll also look to cover on a break below 8100.

*BUY September Canadian Dollar at 8117
*Stop 8094
*Approximate Risk Exposure: $230 per contract
*Profit Target: 8189
*Approximate Profit Potential: $700 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH
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8: SEPTEMBER SILVER
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SIU5 O=9.5 HI=9.5 LO=9 CL=5.5

Silver continues to react to the neckline from the rounded top formation. I would expect to see a bit of a rally, but RSI is at a test point so I'll look to cover the trend side of the trade, even though it might not get filled.

*SELL September Silver at 683.5
*Stop 689.5
*Approximate Risk Exposure: $300 per contract
*Profit Target: 656.5
*Approximate Profit Potential: $1350 per contract
*RRR: 4:1
*Degree of Risk: Moderate to HIGH
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9: MARCH EURODOLLAR
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EDH6 O=.875 HI=.885 LO=.855 CL=.875

No surprise in the ED today as the market continued to react to support at 9583. Look for rates to rally a bit over the next few days and maybe test resistance at 95.925 before falling off again.
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10: WILD CARD
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No wild card market - yet.
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