Want to find new areas for your trading and market insights? Sign up and get your COMPLIMENTARY comprehensive CD-ROM covering the fundamentals of futures trading.

Crude Oil

It looks like we are slipping into at least a short term bear market, and longer term/Trend following types still have huge profits in here which may lead to further long liquidations, so I would not be surprised by seeing price fall another $10.00 or so.

Gold

Trouble holding 800/oz and a less than friendly chart pattern could keep prices working lower here as well. End the year profit taking by trend following long term traders could weigh on prices.

Copper

We are entering the third month of bearish action, and worries here, there and everywhere about the economy should provide plenty of food for the bears and I would be especially wary if price fall below 3.00.

Coffee

This market could prove to be the counter trend move as the chart looks bullish and there may be some bullish news brewing out there.

Stock Indexes

This place has been one wild ride since July. This market needs to see good follow through buying this week to keep the bulls happy. We recovered violently from last weeks lows, and that isn't really all that bullish, as climbs like that are usually unsustainable, and the market is in area of resistance. Weakness here could erase those sudden gains just as fast as they appeared.

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.

Direct from the CBOT floor to your email or mobile device! 2 Week COMPLIMENTARY Trial! Illinois Grain Floor Analyst Vic Lespinasse takes you into the trading pits with on-going reports all day.

December Euro Currency

I believe the recent corrections in the Gold and Crude Oil markets are foreshadowing a breather for the Euro Currency in the short term. In the January options with over a month until expiration, I like an ECF8 145/142 Put spread for approximately $800 with a max gross profit of $3750 (over 4:1). A 300-400 point correction is likely to happen quickly and not be stable, so don't get greedy if the opportunity arises.

December Crude Oil

The fundamentals are simply piling up against the bulls. Also note that the backwardation appears to be correcting itself. Crude has the potential to go lower, a lot lower. In the February options, I like a CLG8 80/75 Put spread for approximately $800 with a max gross profit of $5000 (over 6:1!) . For those willing to take some upward risk, I like selling the CLH8 105 Call and buying a CLH8 75 Put for approximately even money.

December Wheat

A strengthening dollar should hinder any further gains in the wheat market. On a shorter term trade in the January options, I like a WF8 830/800 Put spread for approximately $300 with a max gross profit of $1500 (5:1). For those looking at a longer term trade, look at the March contract where I like a WH8 780/730 Put spread for approximately $500 with a max gross profit of $2500 (5:1).

December E-Mini S&P 500

Yes, Virginia, there is a Santa Claus, and he's going to be buying US equities for all the good little boys and girls. If the hot markets of the past few months (crude oil, gold etc) take a breather, it makes sense to see the money flow increase into US equities. For those looking for a simple trade, in the December E-mini options, I like an ESZ7 1530/1560 Call spread for approximately $350 with a max gross profit of $1500 (over 4:1). For those a little more adventurous, I like buying an ESZ7 1510 Call and selling 2 ESZ7 1550 Calls for a net cost of approximately $450. The max gross profit is $2000 at 1550 at expiration. This position does have upward risk above 1550.

December US Treasury Bonds

The bond market has probably priced in a 25 basis point cut at the December 11th FOMC meeting, so if everything comes in as expected, I believe bonds are headed lower. With 19 days until expiration, I think we'll keep this one simple with long Puts in the January contract. USF8 116 Puts are going for approximately $550, USF8 115 Puts for $400 and USF8 114 Puts for $200. Again on a break, don't be greedy with the profits or look to sell a lower Put in the February contract on a good break.