We’ve been day trading Crude for clients playing both the long and short side …as for staying overnight I’m not sure my clients and I have the stomach. Natural gas posted a new contract low but did pare its losses so clients were advised to remain in their longs. Indices rallied today 1.50-2.25% trading back above the 20 day MA, as we suggested yesterday play the breakout. We will be absent from longs with clients but we could see new highs…trade accordingly. We see no viable trades in forex currently.
Live cattle pushed higher by 1.34% today as buying came back in late dealings. Our suggestion would be to gain bullish exposure on dips in the June contract. The 20 day MA should now act as support again at 114.35. We advised clients to exit their silver longs today and we will be looking to get long again from lower levels. Most likely next week in the July contract…stay tuned. Gold was lower by nearly $25/ounce today after posting a record high yesterday. Aggressive traders can probe shorts with stops above the recent highs with a target of $1360/1375 in the April contract. As for the softs sector clients are looking for a touch more upside in sugar and are advised to gain bearish options exposure in coffee and cotton. Agriculture is a buy again as we suggest buying setbacks in corn, wheat or soybeans. We advised clients to book a small profit on their NOB spreads as 10-yr notes are falling nearly as much as 30-yr bonds. We suggested moving to the short end of the curve getting short Euro-dollars. Prices likely rolled over for at least a trade this week. Clients will be trading March or June 2012 contracts.
Risk disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results.