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| 5 Hot Picks by Michael Levin of Platinum Trading |
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 Michael Levin is a Consultant to Platinum Trading Solutions. He has been in the Financial markets since 1981, having been a broker and trader on the PHLX Equity Options floor in the 1980's and ran trading firms in New York in the 1990's to 2002. Mike briefly set a record in the options trading division of the US trading Championships years ago. |
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Not a lot of commentary on coffee for me this week, just riding a good trade higher as I see prices rolling to the 114-115 area for July expiration. Any pullback and I would roll into the Sep contract below 112 for a move to the high teens, maybe even 121-22. Ultimately the long term "Cup and Handle" formation for coffee could spell disaster for those caught short on any real spike above the $140 area, as historical, volatile runs are apt to catch this crowd sleeping. |
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I am quite surprised by this Bull run and am not going to try and call any top here, aside from waiting until the S&P finally breaks through to a new high and the froth continues for another few days or even weeks... There is real buying out there as more and more huge deals are announced, signaling to the crowd that there's more punch left to drink at the equity party... Selling premium on positions held in portfolios seems the smartest thing to do logically, such as Sep OTM calls on the S&P about 10 points or so up from here. |
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The brief rally a week or so ago made the metals a bit overbought too quickly, hence my comments last week to focus more on Silver than gold, but all declined. The rally today, in the face of the 26% decline in Investment demand, is a small ray of hope for longs, but some I know are talking about a short term collapse in pricing to the $625 area to shake out long term bulls... The dollars recent run has also been the flipside of Gold's move... What to do? OTH puts as cheaply as possible with an objective of a quick 2-3 day pop on a selloff. |
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Love those Beans! Higher and higher they go, I expect a real blow off here of at least another $1 or so at the minimum to the high $9.75 area for Nov Beans, so stay long calls and buy more on any large pullback on light volume that reverses and closes at the top of the range that day.
Corn is shaking some out right now and unless it breaks 395 on the upside, it may be stuck here for a while much to the chagrin of speculators who can’t figure out why it isn't higher already. When everyone you know is long a commodity "mentally" and it isn't going higher.... well, we all know what happens next... Corn needs a confirmed break with a strong hold on a pullback to get me into it again... |
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Cottons nice move above 50 is the beginning of a move I expect will take the Oct contract over 55 sooner than I had predicted last week. It's simple; more people, more people with $, higher cotton prices. With the competition for land in many countries, all cash crops like cotton will command higher and higher prices and more and more can afford it. For real Bulls, a move to the High 50's say around 58 is very possible as well. Long Calls only here for me... |
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| 5 Hot Picks by Sterling Smith of FuturesOne |
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| Sterling Smith is developer and publisher of the FuturesOne Power Index, and a 15-year market veteran. Registered as a CTA he is a noted Coffee, Sugar and Cocoa analyst. Sterling works with clients of all sizes to help improve their trading. |
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The chart is improving just as the weather begins to turn unusually colder in key growing areas. This is a big market that has been oversold for quite a while, and a decent rally in here seems likely. |
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June gold options expire on Friday, and some confusion on the charts, as the weekly is giving some sell signals, the daily may be a touch overextended on the downside could combine for some choppiness overall, but the market still looks and feels very heavy. Copper and silver will only add to the mess. |
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Last week was one of the better performances in crude, which was very weak compared to gasoline. The chart looks heavy and supplies have been improving, so I am looking for prices to ease some this week. |
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Momentum has taken over in here and this market is clearly out of control and on mission to go who only knows where, so I would be very careful with things north of the border near term. |
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The recovery bounce this market made is beginning to look very tired and it we may need some downside work to get this market towards some sort of equilibrium. |
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