Today in Commodities: The Double-Edged Sword

Includes: GAZ, GLD, SLV
by: Matthew Bradbard

It has been some time since all the energies were green (positive) on the day. As of this post, natural gas was higher by 12%, the highest trade in 9 days. Guess what: We are still advising $1 call spreads in October. I’m guessing investors will start to move because they love to chase the market. To be successful you should at least try to get in before a move starts. You have not missed the trade in our opinion, we think this could be just the beginning.

We have no trading ideas in currencies currently.

If you second-guessed why we advised clients to exit corn today, December lost 3.5% trading to a new contract low. Gold and silver are buys, today clients were buyers of October $1050 calls in gold and December $14/17 call spreads in silver for $2750. Additionally we advised clients to buy August and September ES calls expecting a move thru 950 and potentially a test of 1000.

August lean hogs broke above 65 today, see blog from yesterday. December 15 cent spreads in coffee are still a buy. It has been awhile since we’ve traded cotton for clients. we advised them to buy October 55 cent puts today looking for some giveback.