Pigs get Slaughtered

Filed in Gold, Gold Futures, Gold Prices, natural-gas, silver, ubs, US Dollar by on May 12, 2010 0 Comments

Bulls make money in bull markets and bears make money in bear markets BUT pigs get slaughtered. We recognize most have heard this saying but are you applying this to your trading? Lower high and lower low in Crude as prices traded lower again today making it 8 out of the last 9 sessions. Though we have not advised clients to get short we do expect a trade down to $72/73 in June. If we are correct with our assessment we should see downside in the distillates followed by a pop higher in the weeks to come. Natural gas is higher by 3.50% as of this post reaching a 2 week high. We are suggesting longs with clients thinking a trade above $5 is imminent. WHY you ask? A technical bounce, short covering, weather, strength from outside markets and as a contrarian play because no one else is looking for it. Prices as of this post are at or just above the 50 day MA in indices; if we get a close above that level we would advise exiting all short futures. We will be hanging onto the ES puts for clients as we think still in the coming weeks we will see downside but with the futures we view the risk too great. July sugar poked above the 9 day MA for the first time in 3 weeks gaining 5.45% today. We continue to feel an interim bottom was made last week and anticipate a trade back to 18-19 cents in the coming weeks. Clients are advised to be long October 10′ and March 11′ contracts. A rally failed in cotton and we would position to take advantage of further downside. We suggest exiting ALL remaining longs in OJ if we get a 2-4% appreciation as the chart is looking

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Pigs get Slaughtered

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