Morning Market Picks January 29, 2010

Position Trades
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1: CURRENCIES
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March Australian Dollar ADH0
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FLAT

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March British Pound BPH0
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I don't do this often, but the Pound is wound so tight that I'll re-run my trade for Friday in case we get a big breakout. I have raised the overall risk rating however because it is the weekend.

If the March British Pound opens at or below 162.90
BUY 2 March British Pound at 162.93 (stop)(day)

If filled: Exit Stop: 160.49 (stop)(GTC)
Approximate Risk: $1525 per contract
Profit Target: 164.47 (limit)(GTC)
Approximate Profit: $962 per contract
Degree of Risk: Moderate to HIGH

OR

If the March British Pound opens at or above 160.50
SELL 2 March British Pound at 160.49 (stop)(day)

If filled: Exit Stop: 162.93 (stop)(GTC)
Approximate Risk: $1525 per contract
Profit Target: 159.03 (limit)(GTC)
Approximate Profit: $912 per contract
Degree of Risk: Moderate to HIGH

*Which ever side of the order fills first cancels the other order*

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March Canadian Dollar CDH0
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Hold your exit stops in the CD. With a bit of luck we'll see it move lower for Friday.

CONTINUATION of Short March Canadian Dollar at 9687 (January 20)
Exit Stop: 9507 (stop)(GTC)
Approximate Risk: $0 per contract

1st Profit Target: 9587 (January 20)
Approximate Profit: $1000 per contract

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March Japanese Yen JYH0
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The Yen flirted with our exit stop but never got low enough to tag us. With the higher close I'm hoping for a little breathing room going into the weekend.

CONTINUATION of Long March Japanese Yen at 108.63 (January 11)
Exit Stop: 110.37 (stop)(GTC)
Approximate Risk: $0 per contract

1st Profit Target: 109.83 (January 12)
Approximate Profit: $1500 per contract

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March Swiss Franc SFH0
———-

I suspect we will see support come into this market for Friday; however I'm pulling the trade for now. Even if we do get support here we would have to readjust the figures to represent the more recent ranges.

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March US Dollar Index DXH0
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Woo-hoo! The USD rallied enough that we can bring up our exit stops for Friday.

CONTINUATION of Long 2 March US Dollar Index at 7773 (January 19)
Exit Stop: 7853 (stop)(GTC)
Approximate Risk: $0 per contract

1st Profit Target: 7853 (January 20)
Approximate Profit: $800 per contract

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4: MEATS
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April Lean Hogs LHJ0
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Still holding our exit stops until resistance comes back into the market.

CONTINUATION of Short April Lean Hogs at 7135 (January 25)
Exit Stop: 7070 (stop)(GTC)
Approximate Risk: $0 per contract

1st Profit Target: 6920 (January 26)
Approximate Profit: $860 per contract

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6: SOFTS
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March Cotton CTH0
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Okay, we can bring the trade to breakeven now on the remaining stops. That should help me sleep at night.

CONTINUATION Short 2 March Cotton at 7035 (January 25)
Exit Stop: 7035 (stop)(GTC)
Approximate Risk: $0 per contract

1st Profit Target: 6905 (January 27)
Approximate Profit: $650 per contract

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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:

10055
10115
10250
10315
10380
10470
10590

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March mini-S&P ESH0
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Support and Resistance Lines:

1082.00
1087.00
1103.00
1108.50
1115.50
1126.00
1138.50