 | | 5 Hot Picks by Matt Johnson of Cytrade Financial |
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 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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So far the latest Fed rate cut has not enabled the Euro to push to newer highs. For those looking for limited risk, I like a long December Euro Currency (ECZ7) 142 Put for around $500. Those willing to take some upside risk can sell a Dec 148 Call to largely pay for this put. |
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With less than two weeks until expiration, the volatility premium in the December Crude calls remains extremely high. For those crude bears out there licking their wounds, look to sell December Crude (CLZ7) 103 or 104 Calls for $500-600. Yes selling a naked call can be very risky, but with such a short time until expiration and about $10 worth of cushion, I like the risk reward here. |
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Wheat remains extremely volatile, but a downward trend does appear to be developing finally. Two trade ideas here, for those looking for a longer term trade, I like a March Wheat 700/650 Put spread for approximately $500 and a 5:1 risk reward. Those looking for a quick break can look at the December Wheat options with 740 Puts going for about $450 and 730 Puts approximately $350. |
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More bad news from the banks has sent the December S&P to just above 1500 this morning. This seems to be just more old news bubbling to the top, and I'm looking for the market to recover. November options have about 2 weeks until expiration, and a simple long call play looks like the way to go. November E-mini S&P (ESX7) 1520 Calls are going for $700 and 1530 Calls for $500. |
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December US Treasury Bonds |
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December 30-year bonds are challenging the highs from early September, and I would expect them to run out of gas especially if equities begin to recover. December Bond (USZ7) 113 Puts have about 3 weeks until expiration and are going for approximately $400. |
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| | 5 Hot Picks by Burt Schlichter of New World Trading |
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 Mr. Schlichter is a 38 year old industry veteran of 13 years. Burt spent the first part of his career as a Senior Market Strategist with Lind Waldock and today Mr. Schlichter is the Director with New World Trading. Burt analyzes the markets from a technical standpoint and preaches risk management to his clients. Burt has provided market commentary for Reuters, CBS Marketwatch and has appeared on British Business Television program. |
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If you are not long this market, ask yourself or your broker, why? Despite pushing $810, this market still has a bullish posture and still targeting $850 by year end. Buy Dec. Gold @ 805.0(GCZ7) with stop protection at 789.0. Target 850.0(GCZ7). |
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Down $4 bucks, Up $5 buck, Down $3 bucks, Up $3 bucks. I don't care how sharp your pencil is, you can throw the technicals out the window with this emotional market. So look at Crude spreads. Look at buying Feb / selling Jan Crude @ 1.30 to the "sell" side. This is a bearish scenario for crude but a much smoother ride. |
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With stocks and the US Dollar under pressure, look for a rally in the Bond market. Technically, Bonds are just about to break their weekly downtrend-line. Buy Dec Bonds @ 114-26 on a stop. Use Contingent stop loss at 113-24. Target 118-00(USZ7). |
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I know there are plenty of Hogs out there but this market is extremely OVERSOLD. Buy Dec. Lean Hogs(LHZ7) @ 52.00 and simultaneously Buy the Dec. Lean Hog 52/put @ mkt. This will limit your risk to the downside but offer unlimited profit potential. |
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As the fed keeps printing money to stop the fall in the financial sector I would be looking for rallies to sell. Sell Dec. US Dollar Index (DXZ7) @ 77.00 with stop protection 7830. Target 7500. |
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