Rally has begun 3/10/9
As of this posting crude has reversed from higher to lower; currently a $3 range on the day. 50 day moving average is at $45.30 in April and should act as support, if this level gives way we may see shorts pile in . Expect a $40/50 trading range ahead of OPEC this weekend. Use this break in RBOB to buy 20 cent call spreads out until June/August. Our pick in the currency market remains the Loonie. Grains were higher ahead of tomorrow’s USDA. We are lightly long corn and still in the soybean spread with clients. Gold continues to trade lower. We advised clients to buy1/3 of the gold they want to own on a postion trade and may work long futures from lower levels. Our trade today was buying the August $950/1050 call spread; filled at $2400 per. Still looking for silver under $12; todays low within 46 cents on May. Treasuries lower; watch the flow of money from the “safe haven” back to equities. Short the Euro-dollar! No news to report in softs but we remain friendly to sugar and coffee. We gave back the money that was made in previous sessions as hogs were lower by 2-3% today. The rally is underway… as of this posting equity markets are up 5%, we think this is the start of the rally we’ve been calling for in recent weeks. Hopefully some listened to our advice and got long the ES futures and ES options we’ve been suggesting. A 10-15% advance off the lows takes Dow to 7350+ and the S&P to 760+.
Tags: call, coffee, commodity, corn, crude oil, currency, Dow, euro-dollar, fibonacci retracement, futures, gold, grains, Loonie, OPEC, options, put, RBOB, risk, S&P, short covering, silver, soybeans, spread trading, sugar, USDA
