Follow the dollar 7/1/9
Energies traded lower today once again. Our only exposure with clients is long natural gas via October call spreads. We will continue to hold thinking the market will turn higher soon. It will take a close back above the 50 day moving average to turn the trend up; August at $4.06. The US dollar was lower with all currencies benefiting. Our favorite play is long the Loonie, stops below today’s low .8576. Option play buy the September 85/90 call spread. Get long December corn futures, stops below $3.60. We also advised clients to cut losses on their September put protection and to put in a stop-loss at $3.48 on their futures. Gold and silver got back most of their losses from yesterday. Preferred play remains October $100 call spreads in gold and December $3 call spreads in silver. Continue to buy November orange juice, potential hook reversal yesterday. Cotton was up the daily limit today. I guess it took a day to register that we have the smallest cotton crop since 1983. We will have some bullish plays to come.
Tags: commodity, corn, cotton, futures, gold, MB Wealth, natural gas, options, silver, us dollar, USDA
