Week of December 11, 2009

Building Wealth Through Commodity Futures Trading

CHARTSMITH Weekly Market Update Merry Christmas to all...

Welcome to this week's ChartSmith Paper Trading Market Update!

~ GRAINS ~ METALS ~ CURRENCIES ~ ENERGIES ~ FINANCIALS ~ MEATS ~ FOODS ~ FIBERS ~ INDICES ~

Eurodollar
March 2010 Eurodollars settled Friday at 99.595 basis points. The MACD 12/26 lines continue to slope downward, getting closer to moving through the zero pivot point. If the MACD moving average lines cross the pivot point we'll consider this to be additional bearish sentiment and will look to enter on the short side.

Watching for a completed sell signal...

To view the chart go to: http://tfc-charts.w2d.com/chart.php?cbase=ED&market=ED&cterm=30

Gold
February Gold fell further this week with a final closing at $1,119.90 per Troy ounce.

For traders still holding Put options remember to stick to your plan. This includes revising your liquidation point as the market continues to fall in your favor. For ideas on when to book profits revisit chapter 12 of the ChartSmith-Forging Your Financial Future wealthbook.

To view the chart go to: http://www.tfccharts.com/chart/DG/20

Natural Gas
January Natural Gas is showing signs of a possible change in trend. Friday's trading session closed at $5.163 mmBtu.

Watching for a complete buy signal to confirm...

To view the chart go to: http://www.tfccharts.com/chart/NG_/C9

SUGAR
March 2010 closed the week at 24.00 cents per pound. We're short this market utilizing March 2010 Put Options with a 21.00 strike.

Averaged-in premium on the 21.00 strike options is @ 2.07 points per Put with a drawdown of $1,747.20 each, as of Friday's close (2.07 - .51 = 1.56 cent difference x $1,120 = $1,747.20). (Price Value of Option Point = $1,120)

Note: As you can see this market has not broke as quickly as we would like it to have. Our March 2007 21 cent put options are decreasing in value from both a loss of intrinsic and time value. Sugar's market price is above all three moving average lines presently and if the MACD lines cross from bearish into bullish territory this week we'll cut this trade and take the loss. If this occurs there will be a strong tendency for the market to move into even greater heights so we'll just wait on the sidelines for another opportunity to set up.

To view the daily chart go to: http://futures.tradingcharts.com/chart.php?cbase=SU&market=SB&cterm=30

U.S. Dollar Index
December 2009 US Dollar Index closed Friday's trading session at 76.58 points.
Still watching for a bottom formation to develop...

To view the daily chart go to: http://tfc-charts.w2d.com/chart.php?cbase=US&market=DX&cterm=C9

You Can Quote Me On That

Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.
~Albert Schweitzer

Dear friends and fellow traders,

Over the past weeks and months Shawna and I have enjoyed hearing of your enthusiasm for commodity futures trading. We are pleased to see you learning about this wonderful and interesting world of investing and it brings us great joy to share these fantastic market opportunities with you through the weekly updates.

As we progress through the remainder of December and begin making our way into the New Year the ChartSmith Weekly Market Update will be postponed. For the next few weeks it is our goal to spend a little more time with family and friends and a little less time on the computer.

As you know, the commodity markets are one of the central focal points and passions of our life so you may hear from us a time or two through the Christmas season when you least expect it. Look for an occasional "quick" update along the way--we'll still be here with you keeping an eye on the markets and I'll send out a notice when relevant market activity occurs.

For now we just want you to know how important you are to us, as friends and fellow traders, and even more so as people that have an adventurous spirit for learning. Keep reviewing your charts each day, paper trade the markets that are of interest to you, and enjoy this beautiful Christmas season!!!

Happy Trading and Merry Christmas!
Yours, Scott Jones

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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