Commodity Update For August 31. 2007 - A Signal To Go Short In November OJ.

December Corn was changed very little today. December Corn closed at 340 which was up just .2 cents from yesterday's close. Like yesterday, December Corn had been as high as 346 during the trading day, but could not hold its gains and ended up giving up virtually all its gains by the close of trade. Again, this indicates a lot of weakness in the market. My December 320 put option closed unchanged from yesterdays close. The option is worth 9.6 which equals a value of 487.50 which gives me an unrealized profit at this point of $112.20, before commission. I'm hoping that next week, when the traders get back from their long holiday weekend, that prices will firm more to the downside.

November Orange Juice actually provided a trigger for a trade to the downside yesterday. November OJ closed below its previous low of 120.25 made on June 26. Also, the Trend Seeker rating is a strong Down. So, now there is an entry signal based on the Hi-Lo Breakout strategy.I haven't entered this market yet as I'm hoping that the market will go back up some and therefore make the November options a little cheaper. I'd like to purchase the November 110 put. The premium on that option is now 320 points or $480. (One point = $1.50). I'd like to see these options come down 70 points to 250 points which would be a premium of $375.

Have a great Labor Day weekend.

Commodity Update For August 30, 2007

Prices for December Corn closed down .4 cents today. That doesn't sound like much of a move; however, December Corn had been all the way up 8 cents at 348 at one point during trading today. So, for December Corn to actually give up all of its gains today and even close a bit lower suggests that there is a lot of weakness in this market and this price action also suggests lower prices to come. My December 320 put today settled at 9.6 cents or a value of $487.50. So, now I have a profit on this trade of exactly $112.50 before commissions. Now, I'm moving my mental stop on this trade down to the 350 which will help me protect my capital in case the market turns against me.

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

Commodity Update For Wednesday, August 29, 2007-Corn Still Trending Down

Prices for December Corn continued to move down today, down 4.4 cents to close at 340.2. My December 320 put today settled at 9.5 cents or a value of $475.00 So, now I have a profit on this trade of exactly $100.00 before commission. Now that prices have moved lower, I'm still have a mental stop to exit this trade at 356, if the market turns and moves against me.

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

Commodity Update For Tuesday, August 28, 2007

Prices for December Corn continued to move down today, down 8.2 cents to close at 344.6. My December 320 put today settled at 8.25 cents or a value of $412.50. So, now I have a profit on this trade of $37.50 before commission. Now that prices have moved lower, I'm moving my mental stop on this trade down to the 356, which is just above the 50% level of 355. That should help minimize the risk on this trade.

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

Commodity Update For August 24, 2007

As of the close of trading on Friday, August 24, I am still in my December Corn trade, holding my December 320 put option. Corn prices continued to drift lower today. The December contract closed at 358.6, down 3.2 cents from yesterday's close. As happened yesterday, December Corn closed at the lower end of its price range today which suggests some weakness in the market. Also, with the December contract falling and closing below 360, which was a prior resistance level, that also suggests weakness in the market. Both these factors seem to indicate at least somewhat lower prices to come. So, my prospects for this trade look a little better now. The premium on my put option edged up to 5 cents or $250.00 today. So, as of the close of trading today, I have a paper loss of $125 on this option.

Commodity Update For August 23, 2007-Still Short in December Corn

I am still in my December Corn trade with the December 320 put option even though my option premium is down 3 cents or $150. I had said that I would get out of this position is prices closed above 360, which they did yesterday. However, Corn prices today were showing a great deal of weakness. December Corn closed today at 362 which was down 2.2 cents from yesterday's close, but was actually 10 cents lower than the high of the day which was 372. Corn's closing a the bottom of its trading range today and closing so far below its high of today suggests more weakness could be in this market to lower prices further. So, for now, I'm going to see if I can stay in this trade a little while longer and see if Corn indeed does go down further. I'll look at a move above today's high of 372 as a signal to exit this trade.

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

Commodity Trading Update-August 21, 2007

In the aftermath of the commodity markets being so volatile last week, I really don't have very much in the way of prospective trades for this week. However, one trade did get triggered and that was the trade I had been watching to buy a put option in December Corn.

December Corn on August 16, closed below the bottom of the pennant that prices had been in for a long while. However, the December 320 put option on Friday, August 17, was 11 points, or $550, which was more than I wanted to invest. So, that day I put in an open order to buy one December 320 put for 7.5 cents or less. That would put the price of my option at $375 since 1 cent equals $50. My open order was filled on Monday, August 20, for 7.5 cents.

Unfortunately, December Corn prices have advanced back into the pennant formation. Today, Corn prices were up fairly sharply at 6 cents. However, seemed to be unable to get past resistance at the top of the pennant at 357. So, I'm hoping that this resistance level holds and that prices will continue to move back down. But, if the market continues to move against my position, I'm placing a mental stop to get out of this trade if prices close above 360.

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

Commodity Update For August 8, 2007-December Coffee May Be Ready