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| 5 Hot Picks by John Garrity of Manduca Trading |
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Since his arrival in Futures and Options in 1995, John Garrity has served as an equity raiser, currency analyst, and has trained hundreds of clients in the art of trading. Mr. Garrity provides all of his clients with a fundamental and technical analysis on various markets by writing a daily Garrity Report that is e-mailed twice each trading day. Mr. Garrity comes from a family with over 30 years of experience in the agricultural markets. His Father trades at the Chicago Mercantile Exchange in the Meats. |
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This market has had a nice correction. I certainly don't see prices heading lower at the supermarket. I think it could be time to get long. What about a July OJ 130 Risk/Reversal? This is buying the July OJ 130/calls and selling the July OJ 130/puts for about $300 cost. We would have unlimited potential on the July OJ 130/calls and unlimited risk on the July OJ 130/puts. I would risk about $1000 per naked 130/put. Let's say July OJ retests the high of 185 from last March, this position would make about $7900 per Risk/Reversal. |
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Are we going to get our Christmas rally? We have had a nice correction. I believe the downside is limited with the exception of outside forces. This would be bucking the short term trend. I like buying the March Dow Jones 140/146 Call Spread for about $1500 cost and risk. The potential gross profit is $6000. If we get some good Holiday numbers I could see the Dow Jones at 15000 by expiration. This would be a net profit of about $4500 per spread. |
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I like the looks of Bull Spreads in Live Cattle this time of year. I like buying February Live Cattle and selling August Live Cattle at a premium of about 390 premium to February Live Cattle. I would risk approximately $400 per spread. I see potential of about $1000 per spread. We want this spread to widen. I see support around 300 premium to February Live Cattle. I don't see any resistance till about 600 premium to February Live Cattle. |
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March Silver has had a nice correction. I think it could be time to get long. I would look at buying around 1475 with a stop loss below 1450. I see support around 1451, the low last week. I see resistance up around 1650. This is generally a strong time of year, going into the Holidays. The options are expensive. What about collecting Put premium? We would receive about $3500 per 1400/put sold in March Silver. I would risk at least a $1000 per naked 1400/put sold. I could see these options expiring worthless by expiration. |
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How high can Soybeans fly?? What about selling some out of the money call options? We would receive a credit of about $1300 for each 1300/call in May Soybeans (SK8) we sell. We are getting too high, too fast and overdue for a correction. I would set a risk of $600 per naked short call option. My objective is for these options to expire worthless in April.
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Manduca Trading LLC is not responsible for the accuracy of the information contained on linked sites. Manduca Trading LLC is a registered Independent Introducing Broker with the NFA and CFTC. |
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| 5 Hot Picks by Bill Borkowski of Dorman Trading |
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 Bill Borkowski is a retail broker at Dorman Trading, LLC. A 12 year veteran of the futures markets, Bill has traveled around the country doing the seminar circuits. Bill works with clients of all kinds, offering support to online as well as full service traders. |
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The stock market is starting the week off jittery again this week. With poor holiday expectations combined with lingering credit market concerns and fresh tightening news from China, the stock market looks to be on the defensive again this week. Consider going short the December Mini Nasdaq with a stop above the 2080.00 level. Consider taking profits in the 2000.00 to 1985.00 level. |
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The Yen remains bullish so consider buying a small dip in prices today. Consider buying the December Yen around 9050-9060 area, risking it to a close below 8985. The weakness in the stock market and the tightening of the Chinese currency should offer support to the Yen early in the week. |
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While $100.00 Crude may no longer be in vogue, still consider the long side of Crude Oil. Consider buying the Jan Crude on dips, the lower the better as we want to risk the trade to under 9050. A trade in the 9270 area should be considered as an entry point, looking for the market to test the $95-$96 level again. |
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December Corn showed strength last week with continued strong demand, ethanol at a 40-50 cent discount to gasoline, and Friday's cattle-on-feed report showing feeder demand was better than expected. Consider going long December Corn this morning on a small pullback off an expected higher opening. Risk the trade below 376^0 with the market targeting the $4.00 level. |
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December Gold has pushed to its morning lows on the prospects of deflation in the U.S. economy and overbought levels as the spec and fund net long position is over 251,000 contracts. In the face of two disappointing housing reports early this week gold should find support as talk will begin to surface about interest rates being lowered at the December 12th FOMC meeting. Consider going long December Gold around the $776-$777 level, risking the trade below $771. Consider the market retesting the $800 level.
Futures and options trading involves significant risk of loss. No assurance of any kind is implied or possible where projections of future conditions are attempted. Past results are no indication of future performance. All investments are subject to risk, which should be considered prior to making any investment decisions. | |
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