DO NOT get too long 6/26/9
Natural gas runs higher on the close to trade above the 50 day moving average; $4.06 in August. Buy the October $5/6 call spreads and sit for the next 60 days. We’ve been preaching this trade all week …did anyone get involved? No exposure currently in crude with clients because we cannot figure out a short-term direction, a break below $67 or above $72 should determine the next leg. If the dollar closes below 80.00 in September all int’l currencies should move higher. We will be exploring that in more detail in our weekly commentary next week. We advised clients to take their July 93.00 Swiss franc calls off at 44 points today, a bit short of our objective of 60 but we did not want to deal with time decay over the weekend. For the last 5 sessions December corn has been unable to break $4, we will be looking to scalp off these levels until we get a close below $4. Remember we want to have long exposure in agriculture(corn & wheat) into USDA report next Tuesday. Not sure for soybeans yet. Gold and silver traded higher but I was not impressed considering the dollar weakness. Stay with options we have recommended for now. New contract low in lean hogs today ahead of the report. We are positioned short futures with clients against a purchase of (2) August 62 calls. See previous posts. We rolled out of more sugar longs for clients thinking we should get a retracement to get positioned long again; March 10′ contracts most likely.
Tags: commodity, corn, crude oil, futures, gold, Loonie, matthew bradbard, MB Wealth, natural gas, options, retracement, silver, soybeans, sugar, us dollar, USDA
