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| 5 Hot Picks by Matt Johnson of Target Futures | |
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 In the futures industry since 1996, Matt Johnson got his start working with retail clients. In 2000 he established 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. For more information on Matt's trading, please visit www.targetfutures.com. | |
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| The dollar recovery has been a little rocky, but I am still optimistic. In the August options which are based on the September futures, I like an ECQ8 149/146 Put spread for approximately 60 ticks ($750) with a 5:1 risk reward ratio. You can sell an ECQ8 160 Call for about 50 ticks to help pay for the trade. | |
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| It has been a herculean struggle between the bulls and the bears, and for the moment, the bulls seem to have it. I still think we're due for a nice down draft here. In the August options, I like a CLQ8 121/118 Put spread for approximately 60 points ($600) with a 5:1 risk reward ratio. You can sell a CLQ8 170 Call for approximately 80 points to pay for the trade. | |
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| September US Treasury 30-Year Bond | |
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| The bond market continues to be beaten up badly, but there are some opportunities on the long side if you pick your spots carefully. The July options which are based on the September futures expire at the end of the week. I like a USN8 113 Call for approximately 20 ticks ($312.50). Continued equity market weakness could make this a very interesting trade. | |
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| July options expire at the end of this week, and with so little time left, they are relatively cheap. Things continue to heat up in Argentina, and beans could be headed a lot higher and quickly. I like an SN8 1580/1660 Call spread for approximately 20 cents ($1000) with a 4:1 risk reward. With so much volatility and little time left in the July options, I'd be reluctant to sell a put to cover the trade. |
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| The June E-mini S&P options expire this Friday morning. At this point I'm looking for a big move this week, but I think either direction is plausible. Normally buying straddles is very expensive, but the ESM8 1360 straddle (Call and Put) can be bought for approximately 27 points ($1350). This could prove to be quite a bargain by the end of the week. | |
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| 5 Hot Picks by Lee Gaus of EFG Group | |
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 Lee Gaus has thirty years of experience in the commodities industry. In 1992, Lee established EFG Group along with his two partners who are long-time friends. Since then, Lee has traveled the U.S. conducting seminars and trading meetings for retail traders and commodity offices. |
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| Looking for possible setback in December Corn to buy. Dec Corn is at 90% on 8 day RSI, and with calmer, more normal weather in the forecast we could see some profit taking from last week's rallies. I will seriously look at getting long if and when the 9 day RSI hits about 50% on a re-tracement. | |
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| Much the same logic as with December Corn. Except Soybeans while -- overbought by definition -- at 76% RSI, they will probably need a break in Corn to have a decent pullback. If you are inclined to be long Nov. Beans, buy when Dec Corn RSI hits about 50% on the 9 day RSI. | |
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| Sits at 85% on the 9 day RSI, one might consider buying Dec. Cocoa on a profit-taking setback. Watch for either a break to about 2780, or about 50% on the 9 day RSI. | |
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| September Canadian Dollar | |
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| Tried to be strong in the face of all the worldwide economic news, but looks like it might be giving up. I suggest looking at a possible short September Canadian position at 9750 for conservative traders or 9800 for aggressive traders. | |
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| Who would ever have thought that the Coffee market would be less risky than Corn???? Go figure! December Coffee has been on a protracted sideways market and if that appeals to you -- as it does me -- then you may want to look at buying December Coffee around 136.80 if you are aggressive, or 134.50 if you are more conservative. Be advised however that sideways markets will eventually break out of their sideways trend.
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