Most traders that took the summer off should be back at work next week so look for volumes to increase. It may have taken a pipeline explosion but Crude oil as of this post is approaching the 50 day MA up by 3% today. This is the up move forecasted for several weeks. Make yourself a believer because we should see a probe at $80 in the coming weeks. In the last 2 weeks RBOB has advanced 10% and heating has gained just over 8%. Natural gas is still stuck in the range but today was a nice conclusion to the week as prices were higher by nearly 3%. Yes a broken record but our suggestion remains scaling into longs in November futures and buying November call spreads. Prices in the indices are getting overbought; we will likely be looking at short futures for clients next week. As it stands currently some clients are short via November put options. At this time we’re not thinking a total collapse; our initial target is 1060 in the S&P. December cocoa was down by 4.3% this week dragging prices to a fresh 2010 low. We started lightly buying December call options for clients with an initial target of 2885 in the futures. Sugar pared losses closing well off its highs but on the week prices were higher in the March 2011 contract by 7.1%. Clients are holding out of the money puts and are down on the trade, but with over 5 months time we should have plenty of time. November lumber briefly traded above the 100 day MA for the first time in 4 months hitting the 38.2% Fibonacci retracement level at its highs. Our target remains $250! 10-yr notes broke the 40 day MA closing below that level for the first time since April. 30-yr bonds were supported by the 40 day MA; on a breach of today’s lows 126’00 should come into play. We will be looking to fade rallies with clients next week. Nothing new to report in the livestock sector; some clients are short December from around these levels with a target of 96 cents. We advised clients to liquidate the remainder of their December silver calls and to tighten up their stops on longs. At this juncture we are saying that gold and silver have put an interim top. We would be willing to re-explore longs in December gold closer to $1215 and December silver under $19. Read yesterday’s blog…mildly bullish corn, mildly bearish soybeans and neutral wheat! Today’s action corn higher by 1.6%, soybeans down by 1.4% and wheat virtually unchanged. We advised clients to exit their December corn and we will be re-establishing longs on a pullback. Other action in grains clients started getting short December soy meal; target $280/285. Check out next week’s commentary; we may have some new currency suggestions.

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

Matthew Bradbard
MB Wealth Corp.
(954) 929-9898
(954) 929-9993 fax
matt@mbwealth.com
www.MBwealth.com

Please do not place any trade orders via email as they will not be executed.

Trading in commodity futures and options involves substantial risk of loss. Past performance is not indicative of future results.