Shortened Trading Week 9/7/10

With Labor Day and the Jewish holidays expect volatile moves this week. October Crude has finished lower the last two sessions but as a trader what I’m interested in is that prices have closed $1-1.50 off their intra-day lows. We expect the recent lows to hold and for prices to make their way north of $80 in the coming weeks…trade accordingly. What I also noticed is that even on a day like today when Crude ended lower check out the distillates; RBOB and heating oil may be the strength that drives Crude higher. Inside day in natural gas with prices marginally lower in today’s trade. Our suggestion continues to be scaling into November futures and to purchase November call spreads. The 200 day MA appears to be acting as a pivot point in the indices; that level in the Dow is at 10340 and in the S&P at 1107. We feel there could be a touch more upside and then we will likely be getting clients short ES futures and options; look for trade recommendations later this week. Sugar advanced further today hitting a 7 month high. Prices are overbought but the rising OI is not signaling a top just yet. Clients have a small put position in March 2011 and are carrying a loss. Cotton too continues higher hitting a 2 year high today, higher by nearly 2%. Some clients are also carrying a loss their via December 2010 puts. A new 13 year high in coffee today; clients have NO exposure. Treasuries were higher today likely due to the news out of Europe on their recent stress test results. Some clients are positioned short thinking the recent highs will serve as an interim top. Our target in 10-yr notes is 121’00 and 126’00 in 30-yr bonds. Bloodbath in livestock today with the entire complex pork bellies to feeder cattle lean hogs to live cattle were all lower by 1.7-2.0% today. December live cattle broke the 20 day MA today for the first time in 3 months. We’re suggesting bearish plays to clients with a target of 96 cents. Gold prices are within 1% of their record high. My opinion if your not currently long remain on the sidelines; our clients have NO exposure long or short. $20 appears to be acting as stiff resistance in December silver. We remain cautiously long with most clients via futures or December call spreads. On a $1 correction in the futures we would be looking to -re-establish longs in December futures and/or March 2011 options for clients. Continue to buy dips in corn and wheat. For specific plays in KCBOT or CBOT wheat or corn do not hesitate to contact us. The breakout higher in oats could signal another leg higher in the grain complex. Though we rarely trade oats we do follow this market and so should you. With four Central Bank meetings this week (BOJ, RBA, BoE, BoC) sit on your hands in this sector until next week.

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 UBS E-TRACS CMCI Silver TR ETN

. The USV is an ETF that tracks silver. UBS E-TRACS CMCI Silver TR ETN was up .09% in today's session.