Jackpot!! 8/3/9
Crude higher by $2 today trading to a 4 week high. Our clients own zero contracts but before you judge recognize that most of our clients do own natural gas which was higher by 11% intra-day and looks to close just below the resistance level. We continue to advise clients to own $1 call spreads with a 2/3 months window. The dollar collapsed today, unfortunately our only exposure with clients in currencies is puts in the Pound. We will look to cut our losses on the next set back. For all of you that doubted our corn positions, we advised clients to trade out of their December $3.80 and $4 corn calls at a 70-110% profit. We didn’t want to leave agriculture altogether so we did move some of the corn money long December CBOT wheat. It appears that the wheat market should find its way to $6 in the coming weeks. The October 975/1025 gold call spreads bought for clients on Friday was liquidated today for 56% profit. We will hold the December silver expecting more upside in silver. The S&P was higher today, we continue to think that a 5% correction is coming. We are lightly positioned in puts for clients. October lean hogs moved against our positions that were bought last week, for now we feel that a low will be established very soon. We are purchasing options now but once we are confident we may leg into futures. Cotton is on our radar on the next setback.
Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Before trading MB Wealth recommends that you should carefully consider your financial position to determine if commodity trading is appropriate for you. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results.
Tags: call spreads, commodity, corn, cotton, futures, gold, natural gas, options, S&P, silver, wheat
