New month…new opportunities

Filed in economy, euro, Gold, Gold Prices, silver, swiss franc, ubs by on August 7, 2010 0 Comments

In the last three days Crude oil has advanced nearly 6% lifting prices back above the 100 day MA. We missed this most recent move with clients and being we only see an additional $2-4 upside we would not suggest getting on the train at these levels. Pullbacks should find buyers between $79.50-80.00 in the September contract. Natural gas had some trouble getting thru the $5 level with prices correcting back to the 50 day MA today losing just over 4%. We suggest keeping your stops on futures just below that MA. For fresh option entries we would be buying November 50 cent call spreads. On a move above today’s highs we would also suggest moving your October option positions out to November. I do not trust the up move in indices but as I said to a client today that and a nickel will get you a piece of gum. Indices are above the 200 day MA and until we get back below those levels the bulls are in the driver’s seat. Aggressive clients will fade rallies in the S&P as long as prices remain below 1135 in September. Some clients hold September Es puts expecting 1000-1025 into the fall. At the moment they are down on the trade with the last two day’s activity. We see the next upside resistance in the Dow just above 10800 and in the S&P at 1135-1140. Bearish engulfing candle in October sugar today with prices closing 0.90% lower. We anticipate a trade back to 17 cents in the next few weeks. December cotton failed to get above 80 cents today; aggressive traders could short futures with tight stops or buy December put options. December coffee closed nearly 5% off its highs; is an interim top finally in? Lumber is back above the 50 day MA; we expect a gain of 10% in the coming weeks. We expect to see a pull back in…

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New month…new opportunities

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