Does Month end matter any more ? 5/29/9
After a monster month commodities held their ground with a number of commodities making new highs. Crude oil up every day this week, fast approaching $70. A correction in oil and RBOB is over due but will it happen? Traders not willing to trade futures or sell options we advised to buy August $4.50/5.50 call spreads for $2000 on natural gas. Is the dollar doomed? All currencies advanced! Traders who took our advice taking a stab at shorting the Pound were stopped out at a loss again, should have been roughly $600/700 per contract. All int’l currencies that we trade with the exception of the yen printed new 09′ highs. However we did advise a long yen play in recent blogs; July 105/108 call spread at $1000. Gold and silver appear unstopable. Diversify your holdings…the new flight to quality seems to be precious metals. The fact they didn ‘t break at all on month end is very telling. We’re currently losing money in the June lean hog calls in a very light postion, outside of that no real interest in livestock currently. Equities look like they are due for a break but looks can be deceiving. When will the next shoe drop? Fade this rally in treasuries and Euro-dollars.
Tags: bonds, bradbard, commodity rally, crude oil, euro-dollars, forex, futures, gold, inflation, lean hogs, livestock, MB Wealth, month end, natural gas, options, pound, RBOB, reflation, silver, us dollar, yen, yield curve
