Today in Commodities: Risk Management

Risk management is not a perfect science.

The waters are murky in energies, could go either way short term. We continue to like scaling into futures in natural gas and $1 call spreads in September and October. As we alluded to yesterday, the line in the sand in Crude is the 9 day moving average which has held the last 2 days; currently $71.08 in August.

The yen is higher by 119 points as of this post, we are long July call spreads. We’ll try putting in a limit for our objective tomorrow at 160 points or $2,000. US dollar determines direction for other currencies. Use a trade above 82.00 or below 80.50 in September to determine next direction.

We are expecting a bit more back-off in December corn and November beans and will be getting clients long if so. Trade idea in corn: long December futures and sell the $4.50 call, or sell the September $4.50 call and buy the December $4.50 call.

We advised clients to start buying November orange juice calls today for $540/per.

We’re lightly buying July silver futures with stops below $13.95 for clients - I stress lightly. In the next few sessions we expect to be buyers of October $100 call spreads in gold for clients paying a premium of approximately $2,000.

On an additional 5-15 ticks up in the Euro-dollar, re-establish shorts in EDH10′ and purchase puts.

Equities look lower, trail stops on shorts. Objective is 850 in S&P and 8,000 in Dow.

Comments

[rebelbobpug...:]

buy Gold & Silver now right now $$$

Jun 17 11:49 AM