Week of May 22, 2009

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CHARTSMITH Weekly Market Update

Greetings fellow traders!

Welcome to the "paper trading" market update for the week of May 22nd, 2009.

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New on ChartSmith's trade watchlist!

Eurodollar

The Eurodollar market closed out the week at 99.30 basis points. Keep watching for a short side entry to develop. This afternoon we released an article entitled, EURODOLLARS—the Perfect Storm?, detailing this incredibly exciting event.

To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=ED&market=ED&cterm=69

Gasoline is burnin’ hot!

Profits are nearing a 100% cash-on-cash return with over $7,000 per futures contract!!

Our initial price target is $2.39/gallon (12 month 50% value).

»Profits to date at this week’s close of $1.7678/gallon equals +$7,047.60/contract

This trade is progressing and trailing stops placed under recent support should be considered. The support areas you choose should be based on your individual risk tolerance.

To view the chart go to: http://futures.tradingcharts.com/chart/RB_/99

Cotton

Still watching for a 50% retracement for possible long-side entry in the Low Zone…

To view the monthly chart go to: http://futures.tradingcharts.com/chart/CT/M

Lumber

As if we’ve taken a TIME MACHINE back to the 1970’s—Lumber is still trading near 30+ year lows---The front month futures contract traded lower this week with a Friday closing at $174.70 per 1,000BdFt.

MACD remains below the zero pivot point with the other tools signaling a possible sell-off to further lows.

If this happens it will be great for all of us as the investment gets better the lower Mr. Market goes!!!

We’ll be waiting patiently for a bottom formation…
To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=LU&market=LB&cterm=79

Orange Juice

The Orange Juice market gave traders a squeeze this week as prices retraced down towards recent support/resistance at the 90¢ level. Prices rebounded during Friday’s session.

Our original entry point is 92.75¢/lb.

»Profits to date at this week’s close of 94.85¢/lb / +$315.00/contract

Keep your stops just below major support points on the chart. The support area you choose should be based on your individual risk tolerance.
To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=OJ&market=OJ&cterm=99

“Invest in the commodities you use every day.”

ChartSmith monitors markets in the Low (wholesale) Zone for the Buy Low—Sell High profit opportunity and the High (retail) Zone for the Sell High—Buy Low profit opportunity; Cotton, Gasoline, Lumber, and Orange Juice have been on our watchlist for paper trading the low zone this past month and the recent addition of the Eurodollar is being monitored in the high zone.

Complete details for these and other exciting low risk, high profit trade setups are included in the book, CHARTSMITH-Forging Your Financial Future©.

>>START an INVESTMENT CLUB in your TOWN>>

Since crude oil has been going higher (we're long gasoline) due in part to an increase in demand from China here is a pot sticker recipe in their honor:

Combine:

2 lbs. ground pork or turkey

4 garlic cloves, minced

A 1 inch piece of fresh ginger, minced

1 cup fresh cilantro, chopped

2 scallions, minced (optional)

½ tsp. salt

½ tsp. pepper

2 tablespoons broth (chicken or other)

1 ½ tsp. chili paste

1 ½ tsp. sesame oil

Peel apart:

About 50 round wonton wrappers

Brush the edges with:

1 egg, beaten

Assemble in small batches so egg does not dry out. Place a teaspoon of filling in center of each wrapper, fold, and seal edges. Boil 7-8 min. and then sear in peanut oil until brown.

>>>Shawna's yummy Commodity Trader's dessert Recipes>>>

Quote of the Week

And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom. ~Anais Nin

It's Your Time to Shine It’s Your Time to Shine

If you enjoyed viewing this week's market update on the website rather than via e-mail please let us know--we appreciate any comments and/or suggestions you may have.

Also, please feel free to share this webpage with your friends and family as well. We truly believe that the materials herein will assist you and others on their path to greater time leverage and financial freedom. We are sincerely honored and privileged to have this time with you on a subject so near and dear to our hearts.

Have a wonderful Memorial Day Weekend and God Bless!

Scott and the ChartSmith Team

ChartSmith--Forging Your Financial Future

P.O. Box 1209 Clarkdale, AZ 86324 928.254.0077

Please read our IMPORTANT NOTICE: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Nothing in our commodity futures workshops, website, or newsletter shall be deemed a solicitation or an offer to Buy/Sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed during the workshops or on our site. Also, the past performance of any trading methodology is not necessarily indicative of future results.

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