Here's Wednesday's market update. You'll see there are a few markets that are looking promising to me right now and a couple of trades in progress. Thought it might generate a little conversation.
FYI,
Erich
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Commodity Pick Report
Morning Call, October 20, 2010
”The money’s made in the sitting and the waiting, not the trading.” – Jesse Livermore
“There’s nothing wrong with being choosy” – Erich Senft
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Welcome to Commodity Pick Report!
Commodity Pick Report gives you my best hand picked trades for each week. The trades are classified according to their probability of success, with low risk trades having the greatest probability of success and high risk trades the least. There are trade management suggestions for open positions and profit targets are offered for your consideration but I would advise you to adjust recommendations to suit your own circumstances.
Remember the key to making money in trading does not require taking numerous trades; rather the best way to make money is to take multiple contracts on the most promising trades. Note: CPR trades do not account for slippage; therefore your actual fills might be slightly different than those reported here.
Here's to your success!
Erich
erich@tradershelpingtraders.com
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Position Trades
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1: CURRENCIES
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December Canadian Dollar CDZ0
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Okay, now comes the tough part: we have over $2000 in profit as of Tuesday’s close; however the “best” stop placement is breakeven. Can the market go lower? Certainly, but we are likely to see a reaction first.
CONTINUATION of Short December Canadian Dollar at 9900 (October 15)
Exit Stop: 9900 (stop)(GTC)
Approximate Risk: $0 per contract
1st Profit Target: 9850 (October 18)
Approximate Profit: $500 per contract
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2: FINANCIALS
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FLAT
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3: GRAINS
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November Canola RSX0
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Rolling the remaining stops again to protect more profit. Fun, huh?
CONTINUATION of Long November Canola at 4790 (October 8)
Exit Stop: 4950 (stop)(GTC)
Approximate Risk: $0 per contract
1st Profit Target: 4870 (October 8)
Approximate Profit: $160 per contract
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December Corn CZ0
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Watch List – Corn’s getting to be a warmer buy as we get closer to last week’s gap. I’ll wait for support to show itself.
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4: MEATS
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January Feeder Cattle FCF1
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Watch List – A minor pullback off support means we’re looking for resistance to come back and a possible chance to sell.
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5: METALS
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December Gold GCZ0
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Watch List – Tuesday’s huge decline is making 1275 a definite support possibility. We could see a test of 1310 as early as Wednesday.
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6: SOFTS
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November OJ OJX0
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The bulls did get their act together and even hit our first profit target. Ideally we should put the remaining stop below Monday’s low; however in a market like OJ I wouldn’t blame you if you went for breakeven instead.
CONTINUATION of Long November OJ at 14715 (October 18)
Exit Stop: 14115 (stop)(GTC)
Approximate Risk: $900 per contract
1st Profit Target: 15090 (October 19)
Approximate Profit: $562 per contract
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March Sugar SBH1
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I “knew” I was pushing my luck taking a countertrend trade here and now I’m paying for it. At least it was quick – like pulling off a band-aid – but with more expensive results.
COMPLETION of Short March Sugar at 2670 (October 18)
Stopped: 2800 (October 19)
Approximate Loss: $1456 per contract
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Day Trading Support and Resistance Lines
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December mini-DOW YMZ0
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Support and Resistance Lines:
11100
10980
10960
10860
10830
10800
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December mini-S&P ESZ0
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Support and Resistance Lines:
1180.00
1170.00
1163.00
1152.00
1145.00
1127.00
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Commodity Pick Report is a publication of Traders Helping Traders.net
http://www.tradershelpingtraders.net
erich@tradershelpingtraders.net
Copyright (c) 2003 - 2009 Traders Helping Traders.net.
10 - 6078 Truesdale Street, Duncan, British Columbia, V9L 0B4
(250)748-9242 (Pacific Time Zone)
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My Lawyer Made Me Say
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Futures trading involves the substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources that Commodity Pick Report believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.
Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results. Any dollar amount quoted is exclusive of commissions and fees.
CFTC Rule 4.41
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 ensure 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.
Got it?