Market rankings for the option trader

Wednesday commodity market rankings - 2/21/18, By Brad King

There have been several changes to my rankings over the last week. Today we have gold and KC wheat added to my bullish list while coffee and treasury bonds are now on my bearish list. Starting with the bullish side. I would like to trade the Aussie dollar for gold while trading soybean meal for KC wheat. Meal has had a big run.

I have been dead wrong on cocoa, at least in the last few weeks anyway. I would rather be short treasuries than cocoa at this point but realize that the bonds are near recent lows. Coffee looks similar. If initiating new bearish positions in bonds or coffee, put spreads might be wise until we can make adjustments on strength.

The most significant movement today looks to be in the cattle markets. Hedgers should be short and specs may still be short feeders from a few weeks ago. Hold these positions as the momentum in feeders and live cattle may be lower in both by today's close.

If you would like to position for long term trends in 2018, give me a call at 928-773-0472 or you may open an account HERE. Account applications can be completed at your convenience 24 hours/day.

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Bullish commodity rankings

  1. Cotton - Hold long calls - add risk.
  2. Crude Oil - Hold long calls - reduce risk.
  3. Dow Jones/Nasdaq - Hold long call spreads - reduce risk.
  4. KC Wheat - buy calls now.
  5. Gold - Buy calls orcall spreads.
Bearish commodity rankings
  1. Sugar - Hold long puts.
  2. Soybean Oil - Hold long puts.
  3. Treasury Bonds - Buy put spreads.
  4. US Dollar - None
  5. Coffee - Buy puts spreads.

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DISCLAIMER: THE RISK OF TRADING FUTURES AND OPTIONS (LEVERAGED MARKETS) IS SUBSTANTIAL, THEREFORE ONLY "RISK" FUNDS SHOULD BE USED. The valuation of such may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this information be construed as an express or an implied promise, guarantee or implication by or from King Commodities that you will profit or that losses can or will be limited in any manner whatsoever. Information provided is intended solely for informative purposes and is obtained from sources believed to be reliable. This is a solicitation for futures and options trading. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Past results are no indication of future performance. King Commodities expressly disclaims all liability for the use or interpretation by others of information contained in this article.