New Month…Fresh Perspectives 6/1/10

Crude and the distillates were off today but as long as the 9 day MA holds on these three markets we will advise clients to stay long.

As we’ve said in recent posts we’re expecting more upside in the immediate future. Our target in July oil is $76.60, $79 and then $81.50. We’re advising clients to be positioned in August and September options.

Use the 2% set back in natural gas to be a light buyer of September 50 cent call spreads. We are anticipating a rally in the indices and if the market delivers we will be looking to re-establish shorts in the ES for clients…at the moment clients have NO exposure.

Sugar was higher by 1.48%; clients remain long October futures against a short October call. We are mildly bullish anticipating 16.50/17.00 cents in the coming weeks.

Cotton was a loser again today making today the sixth consecutive session. We’re anticipating another 2-3% lower. Clients were advised to cut losses on their August lean hog puts today; a loss of $225/per.

Another bullish trade idea in live cattle; today aggressive clients went long December futures against a sale of December 96 cent calls 1:1. We are bullish but selling the call gives clients a little downside protection. June gold traded to a two week high carrying prices back above $1225/ounce. At the moment clients have NO exposure but based on the price action we do expect a probe of $1250 in the coming sessions. Some of our clients do own silver which was slightly higher today. They are positioned either long July futures or September call spreads expecting a trade above $19/ounce and potentially $19.50 this week or next. Clients that did not previously own corn were advised to buy September calls or December futures today as prices are near the bottom of the trading range we’ve seen in the last three months. We advised clients to take a profit on their long Pounds today as prices were unable to get thru the 38.2% Fibonacci retracement level. Stay the course on your long Loonie positions as we feel there is another 2 cents to go. As for other crosses we advised clients to buy the Aussie today as we expect prices to make their way closer to .8700 in the coming weeks.

Risk Disclosure: The risk of loss in trading commodity futurescommodity futures and options can be substantial. Past performance is no guarantee of future trading results.

MB Wealth Corp. is not responsible and does not endorse anything outside of the content of this article authored by Matthew Bradbard; President of MB Wealth.

Benzinga Recommends that you take a look at the United States Natural Gas Fund(NYSE: UNG). The UNG is the ETF that tracks natural gas. The United States Natural Gas Fund was down 3.10% today.