Commodity Update For July 31, 2007-Still Watching December Corn!

I wrote on July 18, that I thought there was a distinct possibility that December Corn could go down to 300. I still think that, and, in fact, December Corn may even test its support level at 280.

Since July 17, December Corn has formed a small channel. The top of the channel is 347 cents. The bottom of the channel is 324.4 cents. Now, also, just below the bottom of this channel there are three support levels. There is some support around the 317 level.There is also support at 300 and support at 280. Now, these three different levels of support offer a good possibility of a profitable trade using multiple options. As of this writing, July 31, the December 300 puts are only 4 cents or $200.00. The trading plan is if December Corn closes below the bottom of the channel at 324.4 cents, then I plan to buy 2 December Corn 300 puts. I plan on selling one of the options when the first target, 317, is hit. Then, I'll plan on holding the other option to see if the market can go all the way down to the 280 support level. This trade has a profit potential of approximately $1000.00. The options expire on November 20 so there is plenty of time for this scenario to play out.

To take a look at all of my completed trades, please go to www.mylearn2trade.com.

Commodity Update For July 30, 2007- Got Out of Sugar Trade!

Well, my October Sugar trade unfortunately, did not last very long, only one week to be exact.
On Friday, July 27, prices broke below support at 10.00 cents and so I decided to go ahead and liquidate my position since this major support level was broken. I liquidated at a price of 17 points. I had gotten in at 30 points so I had a loss of 13 points which equaled to $145.60. One point in sugar equals $11.20. I was figuring that if October Sugar went below the support at 10.00 cents, then, there was a good possibility that prices would decline further. Plus, this option expires on September 14 so the option could also start to decline in value due to time decay.

I still haven't give up on sugar though. I'm now looking at the March 2008 contract. I'll have more details to follow on what I'm looking for on this contract.

For a look at all of my completed trades, please go to http://www.mylearn2trade.com/.

Commodity Update-July 26, 2007 Still Hanging On With The Sugar Trade

Well, so far, it hasn't been a very exciting ride, but at least I'm still in the October Sugar trade. October Sugar has continued to correct some since I bought the option on October 20. But, so far, October Sugar has held support at 10.03, but it hasn't been able to move up and close above previous resistance levels at 10.34 and 10.52. October Sugar will need to close above both these levels before it can move on up to the 11.00 area which is my target. Today, October Sugar closed at 10.22, which was 7 points up from yesterday's close.

For a look at all of my trades, please go to www.mylearn2trade.com.

Commodity Update For July 23, 2007- Open Order In Sugar Filled.

Today, I was finally able to get into the sugar market. As of yesterday, price had moved up as high as 10.52. Today, prices pulled back as low as 10.23, which is near a support level. So, I put in an open order to buy one October 10.50 call at 30 points or less. My open order got filled at 30 points. My expectations are for this market to go to 11.00 and look to liquidate my option at that point.

For a look at all of my trades, please go to www.mylearn2trade.com.

Commodity Update For July 18, 2007-Watching December Corn

I've been watching the December Corn contract for a good while now. I'm still expecting to short this market as I think there is a good possibility that Corn will move down to at least $300.
Since breaking out of its channel and moving all the way up to 431 on June 18, the market has dropped significantly. From June 19 through July 3, this market dropped all the way to 336, which is a move of $4,750. From July 5 through July 13, the market then corrected and moved back up as high as 371. Since then, however, the market has resumed its downtrend, although today, July 18, prices were back up 5.4 cents at the close. It also still looks as if the 336 area is acting as support. So, I'm watching to see if prices can close below 336. If prices do close below 336, then I want to short this market as I believe that the market will then move down to its next support level of 300, which would be a move of $1800 on a contract. Because of the volatility of this market, however, I'm looking at buying a put option instead of a contract. I'm looking at putting in an open order to buy 1 December Corn 310 put for 8 cents or less. This option expires on November 20th which would give a good amount of time for the trade to happen.

To take a look at all of my completed and prospective trades, please go to www.mylearn2trade.com.

Commodity Update For July 17, 2007-Soybean Oil Trade Is A Wild Ride!

All of the markets in the soybean complex seemed to be charging upwards while the rest of the grains seem to be meandering. This seems to be in line with the fundamental news of the shortage of soybean planting this season as so much acreage has been converted to corn planting. Anyway, on the technical front, there was a trade shaping up in September Soybean Oil using the High Lo Breakout strategy. On July 10, Bean Oil closed at 38.09 which was above it's previous high of 38.08 Trend Seeker said the trend was Up and so now I had signals to enter this market. On July 12, I put in an open order to buy 1 contract at 38.10 or lower and I set my initial stop at 37.77. I was filled that day at 38.08. Prices closed on Friday, July 13 at 38.30 which gave me a profit at that point of $132.00

However, my joy at finally having some profit did not last long. Prices gapped way down at the start of trading on Monday, July 16 and so I was stopped out at 37.65 which gave me a loss of $258.00. I was glad though I got out at 37.65 because prices continued to fall the rest of the day, down as low as 37.36 at one point. Today, July 17, prices have continued to fall, at one time as low as 36.91 before closing at 37.23. What a nerve-wracking ride!!!

For a look at all of my completed and prospective trades, please go to www.mylearn2trade.com.

Commodity Update For July 12, 2007-Open Order Filled On September Soybean Oil

I finally had a bit better luck with my trading today as I put in an open order for September Soybean Oil this morning. This was for the Soybean Oil trade that I talked about in yesterday's blog. I put in an open order to go long one contract at a price of 38.10 or lower. My open order got filled at 38.08. I set my initial stop at 37.77. Fortunately, the market closed at 38.21 today which was a gain of 13 points or $78 from my entry point. One point in this market equals six dollars. Again, I'm looking for this market to go to near the 40 cent level.

For a look at all of my trades, please go to http://www.mylearn2trade.com/

Commodity Trading Update July 11, 2007-Stopped Out on Eurodollar Trade

It tuns out that my December 07 Eurodollar trade was a very brief trade. My stop loss got hit this morning. I got stopped out at exactly 69.72. So my loss on this trade before commissions was 5 points or $125.oo. I probably should have had a higher stop loss, but I really didn't want to risk much on this trade.

Looking ahead, it looks as if October 2007 Sugar may be finally getting close to breaking out and closing above the top of the channel that prices have been in for so long. October 2007 Sugar was up 9 cents today and ended up closing today at 9.75. I'm looking for a close above 9.83 as the signal to get long on October Sugar.

The other trade that I am considering is September Soybean Oil. Prices closed yesterday above the previous contract high of 38.08 so that is a signal to go long in this market. Trend Seeker says the trend is up. Looking at the weekly chart, it looks like prices could go as high at 40 so I'm looking at a potential profit of $1140.

To take a look at all of my completed trades, please go to www.mylearn2trade.com.

Commodity Trading Update July 10, 2007- Open Order in December 2007 Eurodollars Filled.

Finally I was able to find a tradeable formation today. So, I put in an open orderto go short one December Eurodollar contract at 94.67. Surprisingly, my open order actually got filled today.
A couple of reasons that I wanted to trade this market. One was that margin is fairly reasonable at $743. Another reason is that the point value in this market is only $25 and usually the dollar amounts of the daily price swings are fairly small, especially compared, say, to the grains.

Eurodollars had formed a channel and moved down to 94.58 on June 12. Prices then moved back to resistance at 94.73 making the fishhook formation. Prices moved down sharply on July 5 closing at 94.65. I wanted to wait for prices to pull back closer to resistance before going short in this market. The Trend Seeker rating is Down. Prices pulled back today, July 10, and I put in an open order to go short one contract at 94.67. I got filled at 94.67. I set my stop loss at 94.71. My initial target for this market is the contract low of 94.40. December Eurodollars closed today at 94.695 giving me a loss at this point of $62.50.

For a look at my completed trades, please go to www.mylearn2trade.com.

Commodity Update For July 9, 2007 - US Dollar Index Nearing Record Lows

The US Dollar Index looks as if it may present a trading opportunity in the near future. The September contract closed today at 81.21. The life of contract low for the September contract is 80.87. If prices can move lower and close below 80.87, then there will be a trigger to enter this trade to the downside. Trend Seeker is already showing a downtrend.

How low will prices go? On the weekly chart, there is a five year low of 80.48. On the monthly chart we can see that the 80 level is a major level of support. So, we could expect prices to drop to 80.

Because of the high margin in this market, I will buy a put option if I decide to trade this market. I'm looking at the September 81 put which closed today at 525 points or $525. This option has 60 days remaining. I would expect that this option would gain in value by approximately $1000 if prices do move down to the 80 level.

To take a look at all of my completed and prospective trades, please to www.mylearn2trade.com.

Commodity Update For July 3, 2007- Soybeans Still A Viable Trade

There wasn't a whole lot of action in the markets today ahead of the July 4 holiday. Most significant of all the prospective trades that I'm watching was the November Soybeans closed down 15.4 cents today which pulled prices below the support level at 893. So, I'll want to go long if prices can break back above support at 893. However, I'm keeping in mind that with today's sizable move down, prices could continue to move lower over the next few trading days and may even close that huge gap that was made on June 29.

To take a look at all of the prospective trades I'm watching, please go to www.mylearn2trade.com.

Have a great July 4th holiday.

Commodity Trading Update For July 2, 2007- Trade Trigger For November Soybeans.

Even with all of the volatility of the last week in the grains, November Soybeans is giving the signals to get long in this market using the Hi-Lo Breakout strategy which occured today, July 2.
Soybeans exploded sharply upward on June 29. Today, prices kept climbing and closed today at 897.6 cents, which is above the previous contract high of 893 which occurred on June 18. So, with the Trend Seeker showing an Up trend, and, now having a close above the previous high, I'll look to go long in this market. I'd like to enter this market as close to the old resistance level of 893 as possible. I have to admit though, that the fact that there's a huge gap under current prices does make me a little nervous.

To take a look at all of my completed trades, please to www.mylearn2trade.com.