|
|
CHARTSMITH Weekly Market Update Greetings fellow traders! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ As we near the end of August there has been some interesting activity in the markets. Many
of the futures contracts we've been monitoring have been moving deeper into wholesale (low) zone pricing. You
all know what that means! Trading volume may be a little on the light side this next week due to Labor Day weekend which
often brings on increased volatility but as we move further into the fall months trading activity will have a tendancy
to increase which will be great for potential buying opportunities. With that said, let's jump in... Cotton
December 09 Cotton remains on our watchlist--waiting for a fresh buy signal in the wholesale zone. Cotton finished the week down .29 points (1 point = $5). futures broke its uptrend to settle down for the week. To view the daily chart go to: http://futures.tradingcharts.com/chart/CT/C9 Eurodollar
Lumber Lumber is consolidating, using the $170 mark as support. Still watching for a buy signal. The November contract closed out the week at 175.00 per 1,000 Board Feet. We'll Keep watching... To view the chart go to: http://futures.tradingcharts.com/chart.php?cbase=LU&market=LB&cterm=B9 Natural Gas Orange Juice Tropical storms & hurricanes have started in the Atlantic but have missed the gulf of Mexico, Florida, and most of the Southern states. Prices continue to drift down into the wholesale region. November 09 FCOJ had a wacky trading session on Monday with a high of 108.6 cents per pound to end the week down with a closing at 94.50. Waiting for a long side entry to develop... To view the chart go to: http://futures.tradingcharts.com/chart/OJ/B9 SUGAR March 2010 contract made fresh highs Friday, closing at 24.95 cents per pound on the NYBOT (ICE). We are currently short this market with Put options (refer to chapter 11 of ChartSmith - Forging Your Financial Future book for the Sell High - Buy Low trade setup). Averaged-in premium on the 21.00 strike option is @ 2.07 points per Put with a draw down of $537.60 each, as of Friday's close. (1 point = $1,120) Note: This paper trade was entered on 8-7-09. For trades such as this we recommend referring to the prologue (Psychology of a Winning Trader) in the book, ChartSmith - Forging Your Financial Future. With all the media hype that circulates around a multi-year high market, sticking to a trading plan may be difficult at times. This section of the book can help. Sir Isaac Newton, famous mathematician and physicist said it best; "What goes up must come down." 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 had little movement this week. September 09 contract closed down .290 points. Waiting for a long side entry point--stay tuned... 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 low risk, high profit trade setups are included in the book, ChartSmith-Forging Your Financial Future. Notables:
This week ChartSmith - Forging Your Financial Future made its debut on Amazon.com! For continued learning the good people of GBE are offering a Test Drive of the Greatest Business on Earth risk-FREE for 90 days! Trader Jim and the staff of GBE and US Chart Company are world renowned for their unique approach to commodity futures training. Click on the banner below for more information...  Recently Scott was interviewed by US Chart Company's very own Bob Letvinchuk. We've included a copy of this special conversation--press the start button below to listen in...
Quote(s) of the Week Patience is the companion of wisdom. ~St. Augustine Man cannot discover new oceans unless he has the courage to lose sight of the shore. ~Andre Gide, 1947 Nobel Prize winner for literature Thanks for joining us for this week's paper trading market update. As always, we appreciate hearing about your thoughts and ideas, and your trading successes and learnings. Please feel free to email us anytime at scott@mychartsmith.com. God Bless! Scott and the ChartSmith Team  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.
|
For additional commodity futures information visit our all-new ChartSmith Trader's Blog!
Chart Smith 2005, LLC © Copyright 2009 ChartSmith. All rights reserved.