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.