Lighten up! Crude oils trading range was nearly $8 today. We advised clients to book profits today on their longs or at a minimum take some money off the table. We see support at $95 in April followed by $93. Those willing to weather this volatility are advised to buy inexpensive April options with 22 days as we feel we could see wild swings into next week. Natural gas gave up almost 2% but the lows are being respected. Our stance is still wade into longs willing to add if this trade becomes a winner. Sideways action in the indices but there has been some intermediate chart damage and the tide is starting to shift. Use the 20 day MA as resistance as opposed to support now; 12110 in the Dow and 1313 in the S&P. The dollar appears to be breaking down; our suggestion is buy dips in the Yen or Swissie. Let lean hogs work lower and we will likely be a buyer from lower levels in the coming weeks with clients. Remain on the sidelines in live cattle for now. Day one of the break in gold and silver with gold losing just over 1% and silver 4%. We are targeting a trade below$1350 in April gold and $30 in March silver...trade accordingly. Cotton was down limit today with coffee losing nearly. 2%. We favor bearish strategies in these two soft commodities. We continue to buy this dip in corn and soybean oil with clients expecting a bounce in the coming weeks. Treasuries remain the flight to quality...buy dips.
Risk disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results.
By: Matthew Bradbard
Head Trader, MB Wealth Corp.
firstname.lastname@example.org | 888.920.9997