NL vs. AL…commodity impact? 7/14/09
Natural gas higher by 5% today! Have you purchased your October $1 call spreads yet? We anticipate a turn higher in the very near future. The Loonie closed above the 20 day moving average and almost like clock work we saw follow through today, as of this posting the Loonie was higher by 130 ticks. We had several suggestions in options and futures last week…did anyone listen? We do not have any clients short currently but prices look toppish in the yen and I would not rule out a setback to the 20 day moving average rather quickly, in September at 1.0530. December corn was higher by 6 cents today the highest trade in 1 week. December $4 corn calls are our vehicle we’re currently in for clients. We may entertain selling puts in wheat hoping to collect theta, stay tuned. We feel that all current commodity portfolios should have some type of long exposure in either gold or silver. We were buyers of October $1050 calls for clients in gold today. On a close above $13 in September silver we think $13.50 should follow relatively quickly. Short Euro-dollars! We had suggested for clients to take of all their longs off in Treasuries hopefully you heeded our advice as well. Clients took the rest of their money off the table in OJ booking a nice profit. We expect the next move in the softs sector to be in coffee, if we could only hope to have the same result as OJ.
Tags: coffee, commodity, corn, euro-dollar, futures, gold, inflation, natural gas, options, orange juice, silver, us dollar
