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CHARTSMITH
Weekly Market Update
Greetings
fellow traders! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Major price swings were seen in the marketplace this opening week of August. Volatility exacerbated
investors fears of supply & demand issues and global economic concerns. Today's commodity
markets are known for this type of behaviour and this is why we continue to focus on the technicals such as the
zones, the trends, and the tools & indicators. Of course, this is one of the great things about commodity futures--the ability for the market to exhibit huge price movement in a short time is the open door to stellar opportunities! With that said, let's jump in and take a look... Cotton December Cotton futures closed Friday at 62.43 cents per pound. MACD 12 & 26 are holding above the zero pivot point but the 4-9-& 18 day MA lines are not coordinated yet. Keep watching for a possible long-side entry point to develop. Note: December Cotton is still trying to set up a buy signal. Use extreme caution when trading this market due to its proximity to the Mid-Zone. Remember, plan your trade and trade your plan! To view the daily chart go to: http://futures.tradingcharts.com/chart/CT/C9 Eurodollar
Lumber
September 09 Lumber closed this week at $197.10 per 1,000 Board Feet. The $180 support area is still firmly in place on the chart. 4-9-& 18 day MA lines have coordinated. Watching for MACD to confirm longside entry. Stay tuned... To view the chart go to: http://futures.tradingcharts.com/chart/LU/99 Natural Gas Orange Juice
The front month of FCOJ, based on Open Interest, is now the November contract. November closed this week at 104.90 cents per pound on the NYBOT. Crazy OJ! No, I'm not talking about the ex-football player/felon...I'm talking about November 2009 FCOJ. It bounced off of its 50% @ 93.50 and ran up all week to a high of 105.50. Hurricane season on the east coast has been quiet this year due to the weather anomaly, El Nino. But it's far from over; in fact we are now entering the strong season for hurricanes. Wait for a pull-back and watch the tools for a buy signal soon! Keep watching for a long-side entry point to develop... To view the chart go to: http://futures.tradingcharts.com/chart/OJ/B9 SUGAR Note that this is the Sell High - Buy Low profit opportunity as outlined in the ChartSmith-Forging Your Financial Future wealthbook... March 2010 Sugar closed into new highs this week at 22.03 cents per pound with an RSI ranking of 86.76. This pricing represents 28-year highs! After market closing on Thursday the Relative Strength Index signalled well above 80. With an e-mail to our broker the same afternoon, our request was to buy the 21.00 strike March 2010 Put Option during Friday's option market opening in New York. The 21.00 strike price option was at-the-money on Thursday's closing. Friday morning we received a fill price at 2.22 points (1 point = $1,120) as the market progressed higher, equalling a purchase price of $2,486.40 per option. This is the first layer-in. Profit/loss to date at Friday's closing: <$33.60> per Put Option As of Friday's closing the RSI ranking has increased to 86.76. We'll be looking to add a second layer at the beginning of the week... For detailed information review the Buy Low-Sell High trade setup as outlined in the ChartSmith-Forging Your Financial Future wealthbook (Chapter 11, Putting it all Together). Also, Please see the recently released SPECIAL REPORT, Sugar-How Sweet It Is for further information. To view the daily chart go to: http://futures.tradingcharts.com/chart.php?cbase=SU&market=SB&cterm=30 U.S. Dollar Index The US Dollar Index closed up the week at 79.11 points after the release of interest rate talk. Will it continue to fall deeper into the Low Zone or begin to base-out from here? We'll keep monitoring for a possible long-side entry point to develop! To view the daily chart go to: http://futures.tradingcharts.com/chart.php?cbase=US&market=DX&cterm=99 ChartSmith monitors commodity futures 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. Complete details for these and other exciting low risk, high profit trade setups are included in the book, ChartSmith-Forging Your Financial Future. Notables  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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