Fast Break: The Week Ahead

Week of August 20, 2007

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HOT
5 Hot Picks by Jason Rabahieh of Trade Center
Jason Rabahieh is a valuable member of our brokerage team providing services in trading global commodity futures, options and foreign exchange. Specializing in spread strategies, hedging, and trading system management, Jason is a member of the National Futures Association and is registered with the Commodity Futures Trading Commission. Mr. Rabahieh has been a registered account executive in the futures industry since 1997.

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HOT

S&P

Buy Oct. S&P 1400 put and sell 1380 for 4 points ($1000) profit potential ($5k).

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Corn

Buy March 08 Corn futures and sell Dec. 07 at 40 cent spread, look for spread to narrow. Risk to 50.

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Wheat

Buy March 08 Wheat futures sell Dec. 07 Wheat at even money risk to 10 cents. Exit spread at 40 to March 08.

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Cotton

Buy Dec Cotton 60 by 66 call spread for 150 points ($750) potential ($3000).

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Soybeans

Buy March 08 Soybeans 900 by 960 call spread for 14 cents ($700) risk to 7 cents. Profit potential ($3000).

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5 Hot Picks by Matt Johnson of Cytrade

Matt Johnson In the futures industry since 1996, Matt Johnson got his start working with retail clients at Lind Waldock and Man Financial. In 2000 he established Cytrade Futures Inc. which later became Cytrade Financial, L.L.C., and independent introducing broker registered with the CFTC and NFA member. Matt manages the firm and offers his brokers and clients trading suggestions primarily using futures options.

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HOT

October Crude Oil

The mid $70 level has been holding well. Despite some fundamental near misses, you can't count out the bulls. I like a CLV7 $73/76 call spread for approximately $800 with a nearly 3:1 risk reward ratio.

HOT

September Euro Currency

The Fed appears to be moving toward an easing of rates at their next meeting. This will not be pretty for the USD. Look to be a buyer on the dips of the ECU. An ECU7 136 Call for approximately $500 looks good, or an ECV7 137/139 call spread for approximately $500 for those looking for a little more time on the trade.

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September Wheat

With only a week to go until expiration, I like the Sept. Wheat puts. WU7 670 puts are going for approximately $550 and 660 puts for $350. I believe the days for this bull run are numbered.

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September Emini S&P 500

Sadly I don't think the selling is nearly over for the stocks. I would use this temporary bounce as an opportunity to establish new shorts. In the E-mini S&P 500 options, I like an ESU7 1450/1420 put spread for approximately $500 with a 5:1 risk reward ratio.

HOT

December Coffee

Recent stock market weakness has spilled over into the commodities across the board. December coffee has bounced nicely off its recent lows, but looking for the selling to continue, I would look to establish new shorts. With 82 days to go until expiration, I like the KCZ7 110 puts for approximately $400.

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Disclaimer: The Commodity Futures Trading Commission has asked us to also advise you that trading futures is not without risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders! Opinions expressed by Fast Break authors are not those of FutureSource.