Do Fundamentals matter? 6/9/9
Oil is above $70 making a new contract high having appreciated some 40% since the beginning of May. We feel you are late to the party if you don’t already have long exposure though we’ll be looking at getting long on a setback if we ever get one?? Ou pick in the energy sector remains natural gas; the ratio to crude oil is at the widest margin since 91′. We maintain a $5 target in the next 2/3 months. Contact us on positioning with futures and/or options. The dollar has resumed its move lower with currencies moving higher. We are thankful we advised clients to book profits on their short Loonie yesterday. Trade idea in yen today; buy July 102 1/2-105 1/2 call spreads at 110 points or $1,375…target $2,000. Still waiting for the correction in agricuture , have some patience. Euro-dollars are set too rally in the short term, use this rally to get short. Trail stops down on open positions to protect profits. Gold and silver were higher, we are lightly working long again for clients but still believe we could get a deeper correction so keep some dry powder. One of our livestock CTA’s suggested a trade today that we acted on; long August live cattle/short October live cattle @ -550. Expect this spread to narrow in coming weeks. What we like the most is a 3:1 risk/reward ratio, those our our expectations.
Tags: commodity, crude oil, CTA, euro-dollars, futures, gold, managed futures, MB Wealth, natural gas, options, silver, treasuries, us dollar, yield curve
