Today in Commodities: When Will It End?
Matthew Bradbard submits: We had expected trading to slow down by this time but the volumes are still there and we’re seeing plenty of tradable action. $87.50-88 has served as major support in February Crude for the last week and that continued in today’s session. We’re starting to think we may not get a break lower, on a settlement above $90 we will advise clients to start initiating longs again. February natural gas was higher by 4.2% today trading back over the 50 day MA. Aggressive traders could scale into February futures or purchase February or March 50 cent call spreads. If trading futures place stops below the contract lows; which also may serve as a triple bottom…stay tuned. A fresh 10′ high in the indices but we’re still looking for a correction in the coming weeks. We’ve yet to advise clients to short futures but do still like the idea of purchasing March ES put spreads. Looking at the charts it appears we may get a 2-3% appreciation in the dollar index in the coming weeks. If that plays out we feel the best way to trade is selling rallies in the Euro, Swissie or Pound. Live cattle traded back above the 20 day MA but settled just below that level. Aggressive traders can start re-establishing longs as we feel into next year we could see new contract highs followed by record highs. At the moment we’re entertaining selling calls and purchasing futures at a 1:1 ratio…stay tuned. Complete Story »