Commodity Pick Report
Morning Call: May 19, 2009
“The money’s made in the sitting and the waiting, not the trading.” – Jesse Livermore
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Welcome to Commodity Pick Report!
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Commodity Pick Report gives you my best hand picked trades for each week. The trades below are classified according to their probability of success, with low risk trades having the greatest probability of working out and high risk trades the least regardless of risk amounts.
There are also trade management suggestions for open positions. Profit targets are offered for your consideration but unless specified trades will be managed according to the commentary. I would advise you to adjust recommendations to suit your own circumstances.
Remember that making money in trading does not require you to take numerous trades; rather the best way to make money is to take multiple contracts on the most promising trades. All trade recommendations are written for single contracts; however you might consider trading multiple contracts whenever your account, and risk tolerance allow.
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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1: CURRENCIES
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June Australian Dollar ADM9
FLAT – I thought about buying the Aussie Dollar for Tuesday but the range is far too expensive for me – over $2500 per contract! I’m afraid at that price I’m just a spectator.
June British Pound BPM9
I don’t expect a fill (I expect the Pound to rally, but the trend is still down), but there’s no harm in trying to sell at these levels.
If June British Pound opens at or above 150.60
SELL June British Pound at 150.65 (stop)(day)
If filled: Exit Stop: 153.45 (stop)(GTC)
Approximate Risk: $1750 per contract
Profit Target: 149.05 (limit)(GTC)
Approximate Profit: $1000 per contract
Degree of Risk: Moderate to HIGH
June Canadian Dollar CDM9
FLAT
June EuroFX ECM9
FLAT
June Japanese Yen JYM9
FLAT
June Swiss Franc SFM9
FLAT
June US Dollar Index DXM9
The US Dollar continues to show divergence so I’d expect a bigger pullback than what the market’s showing right now.
If the June US Dollar Index opens at or below 83330
BUY June US Dollar Index at 83530 (stop)(day)
If filled: Exit Stop: 82450 (stop)(GTC)
Approximate Risk: $1080 per contract
Profit Target: 84530 (limit)(GTC)
Approximate Profit: $1000 per contract
Degree of Risk: Moderate to HIGH
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2: FINANCIALS/INDICES
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March Eurodollar EDH0
FLAT
June 30 Year T-Bond USM9
FLAT
June mini-DOW YMM9
FLAT
June mini-S&P ESM9
FLAT
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3: GRAINS
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July Canola RSN9
FLAT
July mini- Corn @YCN9
FLAT
July Oats ON9
FLAT
July Soybean Meal SMN9
FLAT
July Soybean Oil BON9
FLAT
July (mini) Soybean @YKN9
FLAT
July mini-Wheat @YWN9
FLAT
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4: MEATS
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August Feeder Cattle FCQ9
Divergence is getting closer which makes our Feeder buy considerably riskier. You could consider leaving the trade for Tuesday and re-examining it, or roll the dice. The consolidation suggests a big move is coming soon.
If August Feeder Cattle opens at or below 101.50
BUY August Feeder Cattle at 102.35 (stop)(day)
If filled: Exit Stop: 100.50 (stop)(GTC)
Approximate Risk: $1150 per contract
Profit Target: 103.95 (limit)(GTC)
Approximate Profit: $800 per contract
Degree of Risk: HIGH
June Live Cattle LCM9
FLAT
June Lean Hogs LHM9
FLAT
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5: METALS
July Copper HGN9
FLAT
June mini-Gold YGCZM9
FLAT
May mini-Silver YIK9
FLAT
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6: SOFTS
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July Cocoa CCN9
FLAT
July Coffee KCN9
FLAT
July Cotton CTN9
FLAT
July OJ OJN9
Not a very good start to our OJ trade as the market made a rather large “magic bar” style formation. It’s not a true magic bar as it is with trend, but all the same it’s not very encouraging! Brace yourselves.
CONTINUATION of Short July OJ at 8930 (May 18)
Exit Stop: 9385 (stop)(GTC)
Approximate Risk: $675 per contract
Profit Target: 8635 (limit)(GTC)
Approximate Profit: $450 per contract
Degree of Risk: HIGH
July Sugar SBN9
FLAT
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Commodity Pick Report is a publication of Traders Helping Traders
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.
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