Today in Commodities: Staying Ahead of the Curve

Includes: GAZ, GBB, SLV
by: Matthew Bradbard

We’ve had server issues of late so I apologize if you’ve missed our commentary in recent days. The markets have been crazy I hope you’ve been taking advantage.

Crude oil has had a nice run the last 4 days. It is starting to look tired, we would suggest tightening up stops or taking partial profits on longs. After a very impressive showing yesterday, natural gas held its ground today, only losing 4 cents as of this post. We are suggesting all new entries to trade the November contract opposed to October.

We were buyers of more British pound puts today for clients, September 165 puts for just under $600. This is in addition to the 160 puts that we already own and are under water.

Gold and silver were higher today, we did lighten up and book profits on some recent entries in silver. Gold may in fact go to $1000 from here but it will be without our clients as we have no exposure, we prefer silver. Clients that feel the recent stock market rally has run its course we suggest buying ES 950 & 925 puts.

We did nothing in agriculture today though, we suggest buying dips.

Lean hogs traded almost 4% lower today to a new contract low, we are buying this dip via October calls for clients thinking a bottom is near. We do not suggest futures at this point. It makes me sick to see sugar, we exited at 17 cents expecting a pullback and prices have gone straight to 20 cents/lb without us. If and when we get a dip, we will be buyers for clients. A 23% move higher in the last 45 days we feel is too much too fast.

Disclaimer: The risk of loss in trading commodity futures and options can be substantial. Before trading, MB Wealth recommends that you should carefully consider your financial position to determine if commodity trading is appropriate for you. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results.