Commodities Today

Expect volatility tomorrow on quadruple witching. Sellers have not entered in crude but buyers may be getting tired. A correction feels like it is coming.

Tighten stops on natural gas as we may get a temporary push lower as prices have appreciated 15% in the last 2 weeks with no real fundamental shift. We will be buying a setback and still like September and October $1 call spreads.

Treasuries slid today with yields moving higher. Can I say I told you so! Fade rallies in the Euro-dollar, we were sellers on futures and buyers of puts for clients yesterday. No significant movement in the forex today, though we are thankful we covered yen longs yesterday as prices are off 100 points as of this post.

Agriculture was weak today; we covered corn longs today because of the lack of follow through. Look to get repositioned long December corn again on evidence of a bottom, the hook reversal has yet to be confirmed.

Gold and silver are still trying to decide their next leg; our bias is to the upside but stay tuned. Our play for now is October $100 call spreads in gold and $3 call spreads in December silver.

We may start to explore longs in cotton and coffee, which were higher by 3% and 2% respectively today. Orange juice was higher by 1.5% to close higher for the first time in 14 days. We are advising purchasing November $1 calls.

Comments

[Larry House:]

Useful info. Thanks.

Jun 18 04:55 PM