Risk Aversion 5/27/9
We advised clients to buy natural gas today that did not yesterday; sell 1 August $3.25 put & buy 8 September $8.00 calls..todays fill $200 credit. OPEC meeting 5/28 Energy looks strong! We feel starting to buy here is too agressive, wait for a setback. The US dollar looks like it may rally as we said yesterday. We advised clients to lighten up on long int’l currencies. Exited all remaining Loonie longs today. Soybeans were higher but the November/July spread narrowed 6 cents today. Gold was slightly lower with silver slightly higher. We’re entertaining the idea of moving from December silver $15/20 spreads booking a profit and moving into September $16/19 spreads. Have you sold Euro-dollars yet? Short the March 10′ futures or conversely we were buyers of 98.50, 98.75, and 99.00 December 09′ puts today for clients. The short bond trade is stil alive DOWN 7 handles in the last 2 weeks. Equities lower..we have been suggesting this for 3 weeks. 7750 in the Dow and 830 in the S&P soon.
Tags: bonds, commodity, crude oil, Dow, futures, gold, MB Wealth, natural gas, risk aversion, silver, soybeans, spread trading, treasuries, us dollar, yield curve
