Commodity Pick Report
Morning Call: January 6, 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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March Australian Dollar ADH0
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Resistance showed up Tuesday and that’s enough for me to try selling this market again for Wednesday. Yes, I know I’m biased on this market, but if this fails then I’ll change my mind… I promise.
The support and resistance parameters for this trade are pretty straightforward. Do you see them?
If March Australian Dollar opens at or above 9000
SELL 2 March Australian Dollar at 8997 (stop)(day)
If filled: Exit Stop: 9121 (stop)(GTC)
Approximate Risk: $1240 per contract
Profit Target: 8867 (limit)(GTC)
Approximate Profit: $1300 per contract
Degree of Risk: Moderate to HIGH
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March British Pound BPH0
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FLAT
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March Canadian Dollar CDH0
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The Canadian Dollar gapped us on the open voiding our trade and truth be told I’m not thrilled with the look of Monday’s session so I’m staying FLAT for Tuesday.
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March EuroFX ECH0
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FLAT
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March Japanese Yen JYH0
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Watch List – Oops! I might have missed the boat on the Yen trade. Now I have to wait to see if we get a retest of support before I can buy. We should know after Wednesday’s session.
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March Swiss Franc SFH0
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FLAT
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March US Dollar Index DXH0
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Okay, I’ll bite. The US Dollar showed support near the 7735 region. This one’s a little fuzzy, but it’s definitely there. I’ll set up to buy a move higher for Wednesday with the first profit target at the last reactionary resistance area.
If March US Dollar Index opens at or below 78000
BUY 2 March US Dollar Index at 78030 (stop)(day)
If filled: Exit Stop: 77340 (stop)(GTC)
Approximate Risk: $690 per contract
Profit Target: 78670 (limit)(GTC)
Approximate Profit: $640 per contract
Degree of Risk: Moderate to HIGH
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2: FINANCIALS
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September Eurodollar EDU0
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Watch List – The ED broke through resistance on Tuesday but we have another resistance level right on that session’s highs. If we see resistance for Wednesday I might consider a sell for Thursday. Maybe.
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March 30 Year T-Bond USH0
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FLAT
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3: GRAINS
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January Canola RSF0
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FLAT
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March Corn CH0
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FLAT
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March Oats OH0
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FLAT
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March Soybean Meal SMH0
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FLAT
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March Soybean Oil BOH0
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FLAT
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January Soybean SX0
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FLAT
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March Wheat WH0
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FLAT
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4: MEATS
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January Feeder Cattle FCJ0
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FLAT
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February Live Cattle LCG0
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FLAT
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February Lean Hogs LHG0
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FLAT
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5: METALS
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March Copper HGH0
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FLAT
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February Gold GCG0
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FLAT
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March Silver SIH0
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Time to pull the Silver trade and start looking elsewhere. FLAT for Wednesday.
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6: SOFTS
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March Cocoa CCH0
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FLAT
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March Coffee KCH0
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“Technically” speaking we don’t have enough room here to move our stops. Of course there’s a lot of money at play so breakeven would be a smart call, but it want to know what I would do to maximize a possible run? Leave them alone for one more day and pray for a rally!
CONTINUATION of Long March Coffee at 138.60 (January 4)
Exit Stop: 135.75 (stop)(GTC)
Approximate Risk: $1068 per contract
1st Profit Target: 141.35 (January 4)
Approximate Profit: $1031 per contract
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March Cotton CTH0
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FLAT
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January OJ OJF0
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FLAT
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March Sugar SBH0
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FLAT
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Day Trading Support and Resistance Lines
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March mini-DOW YMH0
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Support and Resistance Lines for January 6, 2010:
10360
10415
10455
10515
10535
10550
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March mini-S&P ESH0
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Support and Resistance Lines for January 6, 2010:
1110.00
1114.00
1117.00
1125.00
1130.00
1133.00
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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?
