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| 5 Hot Picks by Lee Gaus of Cadent Financial |
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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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As the world and especially the US economy continues to be a negative issue I believe the precious metals will continue to find willing buyers. I thing that buying gold on dips is a risk you may wish to consider a long Dec Gold trade around the $940.00 area. | |
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| July 09 Soybean Meal/December 08 Soybean Meal |
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As it appears that the grains and oilseeds are in a period of correction I prefer spreads over outright trades. If you agree let me suggest you consider buying July 09 Soybean Meal/Sell December 08 Soybean Meal around the $5.00 premium to July 09 area. | |
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If you prefer outright positions, and have the risk capital to withstand the possible dramatic swings you may wish to consider shorting Dec Corn around the $6.55 level. | |
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While trading in Commodity Futures and Options carries a significant risk, this Coffee recommendation is probably a higher risk than normal. If you have the cash and the stomach for such a trade look at selling Dec Coffee around 142.50. If it starts to move against you don't get caught watching the paint dry. | |
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Until the US dollar can show some staying/recover power I continue to find the Sept. Euro Currency a potentially decent market to buy. You may wish to consider buying the Sept. Euro Currency around the 1.5767 level. | |
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| 5 Hot Picks by Eric Reinholtz of DAW Trading |
Eric Reinholtz is a Senior Market Strategist with DAW Trading. Mr. Reinholtz relies heavily on his expertise in charting markets for his exact entry and exit scenarios. Mr. Reinholtz’s focus targets very realistic money-making strategies more so than cryptic buy & sell signals that can get flashy publicity, but have little to do with actual portfolio alignment. He believes a professional way of approaching the markets should emphasize scaling-in during serious purges (ideally after bases are built), and scaling-out gradually into strength (ideally into extended parabolic moves), happily not worrying about "milking" the last percent out of a move.
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Sucker's rally? Last traders who bought into the rally should be extremely wary that they didn't get caught long. The storm still possesses strength and could get stronger now with the renewed enthusiasm from the decline in oil. Traders this week should pay close attention to resistance located at the 1268-1272 level. Only a move back above 1282 would end this bearish pattern. Traders needing daily updates can sign-up today and start receiving our Broker's Edge. |
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Has the US dollar really bottomed? After nearly eight years without any long positions, finally the bottom appears in sight. Traders can take a short position in the Euro currency as close to 158.75 as possible, risking contract originally to new highs. If market breaks below 157.20 without allowing traders to enter short, cancel all orders. | |
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| Traders last week saw Cocoa take a major hit Friday and should see follow through profit taking early this week. This will give us the perfect opportunity to enter the December cocoa market with long term positions. Traders should look to enter long as close to 27.65 as possible, originally risking to 26.80. If market climbs back above 2885 without allowing us to enter, cancel any outstanding orders. |
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Last week, I highlighted the 118 level in November Feeders but the market has failed to allow us to enter that those prices. Traders should enter instead anywhere above 117 level this week, risking to 119.20. First price target will remain 115.25 level for now. | |
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The monster decline in crude oil prices has led to a deleveraging for fund managers who were loaded up with grains. The August of 2008 contract is currently trading only a few pennies under the March of 2009 contract. Traders can look to buy the March 2009 soybean contract and sell the August 2008 contract as close to even as possible, risking a fixed ten cents per contract. Ideally, as short-term demand dissipates from the market, normal spread activity will continue, pushing more of premium to the back month. | |
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