Week of June 12, 2009

Building Wealth Through Commodity Futures Trading

CHARTSMITH Weekly Market Update

Greetings fellow traders!

Welcome to the "paper trading" market update for the week of June 13th, 2009.

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Thanks for joining us here!

We're posting this week's update from the heart of the Redwood timber industry along the coastal mountain range in Scotia, CA. During our travels the past few days we've visited a couple of lumber mills and have discovered that there are more mills being closed down in the Sierra Nevada range. Sierra Pacific Industries is consolidating operations and there's talk of more closures.

Don't miss the video we've posted at the bottom of the page--This is a great video on how to deal with fear - Bob Newhart style :)

It's been another great week and the markets have been moving so let's get started...

Cotton
We're still monitoring cotton for a retracement into the wholesale zone--stay tuned…

To view the daily chart go to: http://futures.tradingcharts.com/chart.php?cbase=CT&market=CT&cterm=79

Eurodollar
The Eurodollar market closed out the week at 99.265 basis points. Keep watching for short side entry confirmation. For more information on this market development see the recently released article, EURODOLLARS—the Perfect Storm?.

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

Gasoline

This week gasoline successfully closed over $2.00 per gallon. Our price target is $2.39/gallon (12 month 50% value).
Click here to view the recently released article; Special Report: GASOLINE

»Profits to date at this week’s close of $2.0247/gallon equals +$14,897.00/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

Lumber

The front month futures contract (September 09) traded up this week with a Friday closing at $224.80 per 1,000BdFt.

The May 29th buy signal in September lumber has accumulated profits to date of + $2,167.00 per contract.

Lumber is trading in our direction, however, on the weekly chart the long term downtrend line has not been broken. It's getting close and when it does break to the upside this will represent additional buying strength, but for now just be aware of this. One more notable is the seasonality; the well known "in by Halloween, out by Valentines" seasonal play is not in our favor on this trade's timing. Refer back to the Seasonal Patterns section of ChartSmith-Forging Your Financial Future for more information on seasonal confirmation.

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=LU&market=LB&cterm=99

Natural Gas
Monitoring Natural Gas for a possible longside entry. The July 09 contract is the current front month.

To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=NG&market=NG&cterm=79

Orange Juice
Orange Juice fell out of the ascending channel to finish the week at 85.80 cts/lb. This triggered a stop loss on June 9th at 89.70. From our original entry point of 92.75¢/lb to the exit point of 89.70¢/lb this represents a loss of $457.50 per contract.

We'll keep watching for another longside entry point...

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. New to our watchlist this week is Natural Gas.

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

Quote of the Week

"If you believe you can, you probably can. If you believe you won't, you most assuredly won't. Belief is the ignition switch that gets you off the launching pad." Denis Waitley

Thanks for joining us for this week's paper trading market update. As always, we appreciate hearing your thoughts and ideas, and your trading successes and learnings. Please feel free to email us anytime at scott@mychartsmith.com or mychartsmith@gmail.com.

To your abundant success!

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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