 | | 5 Hot Picks by Derek Gilroy of Trendphonic Futures |
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Derek Gilroy has been a member of the Chicago Board of Trade since 1997 and is a senior trader at Trendphonic Futures. Prior to that, Mr. Gilroy started his career working in the Grain and Financial pits on the trading floor of the Chicago Board of Trade in 1994. From October 1997 until January 2007 Mr. Gilroy functioned as a local trader on the floor of the Exchange trading the 10-year cash basis. Currently Mr. Gilroy serves and President of Trendphonic Futures and Head Trader for their Managed Accounts.
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| After hitting a contract high this morning, RBOB has seen some pullback. Technically speaking we have broken out of a top at 173. We see increased demand coming in the summer season, which should be positive for RBOB. We see a test of 190 coming within the next few weeks. We are buyers at 173.80. |
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Currently trading at the all-important 83 level. The trend in the dollar is down and we see the market testing last week's low of 82 and moving lower. This would be bullish for all commodities markets, especially energies and grains. Housing starts and the minutes of FOMC meeting later this week should be market movers.
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We see copper consolidating this week in-between 2 and 2.20. Eventually, coupled with a lower dollar, we see copper testing the April highs of 225. We still good demand coming from China. We are looking to buy near 2 with a tight stop for a longer term trade. Higher prices in silver would be helpful to copper.
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After a bit of a correction last week, we see the bonds looking to continue their trend lower, yields higher. There is resistance at 124 that looks to hold. If we can close below 122, we see the next stop at 120. We are looking to get short on a stop at 122'14.
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Coffee is currently trading at highs not seen since October. We are firmly in a bull trend and see a close above 131 signaling a new bull move. We would not be surprised to see 138-140 by the end of the week if we close above 131. We are buyers at 131 on a stop. We would not work a stop in coffee since it jumps around so much, but rather keep a close eye on it.
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| | 5 Hot Picks by Mike Seery of Manduca Trading LLC |
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 Mike Seery began his tenure in the agricultural complex at the Chicago Board of Trade. He then transitioned off the floor to pursue an ambition of becoming a full service broker, which he succeeded in doing. Using a disciplined trading approach with a strong emphasis on risk and money management, Mr. Seery incorporates a mixture of fundamental and technical analysis, and is comfortable trading any markets his customers are interested in trading. |
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Going into the summer months with lower carryovers in the corn and soybean markets, any possible drought or other weather concerns could work their effects on the Oat market. Higher prices may be ahead as Oats are relatively lower priced compared to corn and wheat. Buy July Oats at the market and place a sell stop at the 2-week low of $1.970. Total risk on this trade is initially approximately $1,350. Please keep raising the stop to the two-week low as time goes by to reduce the risk of all these recommendations.
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The combination of the perception of a bottoming US economy plus the Chinese stimulus plan seems to be working itself into the market as a bullish scenario for such raw materials as crude and base metals. Look to get long July mini-crude under $59.00 and initially place a stop at $53.22. The approximate risk on this trade will be $3,000 initially, though remember to keep raising the stop.
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Higher grain and oilseed prices may help "buy" more acres, which could leave cotton with lower than expected acreage and possibly even higher prices to come. Buy July Cotton at a price near 55.50 and place a stop at 52.35, initially risking approximately $1,600. Raise stop daily according to your risk tolerance.
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This trade has more risk than the other trades so you may want to tighten the stop even more aggressively depending on your risk tolerance. Buy July Coffee at 126.50 and place a stop at 116.50, risking approximately $3,750 on this trade.
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If the economy has bottomed than lumber prices, which historically are very cheap, may very well enjoy an upswing along with the economy. Buy July Lumber around 180.00 and place stop initially at 163.50, risking approximately $1,820 at the onset. Trail the stop at the two-week lows.
Futures trading involves substantial risk and therefore is not suitable for all investors.
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