OPTONS PLAY: WILL BEANS PUSH THROUGH RESISTANCE?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTONS PLAY: WILL BEANS PUSH THROUGH RESISTANCE?

HOW LONG CAN THE FIRST AREA OF RESISTANCE ON THE BEAN CHART HOLD?

Fundamentally even the grains bounced around yesterday on the news of the Malaysian flight shot down over the war torn area near Ukraine/Russia. The September soybeans which I am following closely had about a 29 cent/bushel trading range. They ended the day down about 3 cents, after rallying up over 25 cents/bushel right on the news.

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne

Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMA’s. I have also added Bollinger Bands or BB’s (the light blue shaded area) and Candlesticks (the red and green bars with the wicks, on this daily chart each bar represents a day of trading). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate a chart at the click of a mouse.

My favorite technical indicators show me that soybeans are still in a “SUPER-TREND” down. This happens when the 9 day SMA (red line) crosses down and under the 20 day SMA (green line) as both indicators point lower while the market trades below the 9 day SMA. We have that now, but the market continues to bump up against the 9 day SMA and even traded above it yesterday. However we closed below it and we are below now as you see on the chart below.

I figured this out by going back and forth from a daily to a weekly chart by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

Options on Beans for People Who Don’t Know Beans About Options: http://www.zaner.com/offers/?page=8&ap=mmckinne

DAILY SOYBEAN CHART
ZSU4-DAILY-7-18-14

OPTION PLAY:

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

OPTIONS PLAY: HOW FAR CAN THIS BREAK OUT HIGHER IN GOLD TAKE US?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTIONS PLAY: HOW FAR CAN THIS BREAK OUT HIGHER IN GOLD TAKE US?

AFTER A BRIEF PERIOD OF CONSOLIDATION IN THE COMEX GOLD MARKET, HOW HIGH CAN THIS BULLISH BREAK OUT TAKE THE MARKET?

Fundamentally, from what I am reading here today it is problems everywhere from Europe to the Far East to the Middle East that could be causing the break out in the Gold markets. Currently at the time of this writing July 10, 10:36 a.m. I have a high in the October Gold of $1347/ounce with the market up $14.30/ounce at $1339.30/ounce. So at one time we were up over $20/ounce on the day.

The problems in Europe as far as I can tell are coming from one of Portugal’s largest banks and some serious debt concerns. According to one of my favorite fundamental new sites Bloomberg, “….Portugal’s central bank said Banco Espirito Santo SA is protected after its parent missed debt payments, Moody’s Investors Service downgraded a company in the group citing a lack of transparency and links to other companies.” All in all, it sounds pretty shady to me. This in my view, just adds fuel to the fire of the sovereign debt issues in many of Europe’s nations.

In terms of the Far East the Nikkei in Japan was off due to a weak economic report regarding machinery orders. Also China’s markets were lower as well. Then of course we have the ongoing tension in Ukraine and the Gaza strip.

Fifty Most Common Reasons Why Most Futures Traders Lose Money:

http://www.zaner.com/offers/?page=7&ap=mmckinne

From a technical standpoint, right off the bat I see a break out to the upside after a period of sideways action. This to me is bullish. As they say “markets come out of consolidation the way they came in”, and that is the case here as Gold was moving higher before it settled into this consolidation mode. I have highlighted this consolidation area on the chart below by using two royal blue arrows. Of course now the question is, will it continue higher? Of course the “gold bug” in me says it will and for that matter so does the chart below, as we have clearly broken out of the range to the upside.

On the chart below, I have placed my favorite technical indicators. The 9 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, blue line). I have also added the Bollinger Bands (BB’s, yellow lines) and Candlesticks (red and green bars), each bar represents one day of trading on these daily charts.

This move alone today as placed the market in a “SUPER-TREND” higher. To qualify for a “SUPER-TREND” up and a full blown buy signal here is what I need. I need the 9 day SMA (red line) to move up and over the 20 day SMA (green line) as both indicators point higher and the market trades above the 9 day SMA. We have that here as you can see on the chart below.

I figured this out by placing my favorite indicators on the charts and studying them which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my readers should check it out. Yes?

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

DAILY OCTOBER GOLD CHART
GC-DAILY-OCT-7-10-14

Chart by ESIGNAL

OPTION PLAY:

I like the idea of buying bull call spreads in GC in a 3 to 1 ratio with a put for a hedge or “insurance” in case the market unravels and falls drastically.

For exact details on other types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com. In addition, I am by no means “married” to the gold market. I like to make trade recommendations to my clients in the direction of the existing trend whether the market be the precious metals, energies, currencies, financials, softs, grains and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Success is measured by your discipline and your inner peace.” -Iron Mike Ditka

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS.

OPTIONS PLAY: HOW LONG CAN THE GRIND LOWER IN CRUDE OIL CONTINUE?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTIONS PLAY: HOW LONG CAN THE GRIND LOWER IN CRUDE OIL CONTINUE?

AS FAR AS THE FUNDAMENTALS AND TECHNICALS ARE CONSIDERED IN THE CRUDE OIL MARKET, HOW FAR DO WE THINK CRUDE OIL CAN FALL?

Fundamentally, I believe there are 3 major reasons why crude oil prices will move lower to sideways for the most part over the next 60 days or so.

1. The al-Qaeda insurgency in Iraq has not made it and does no look like it will make it to the south of Iraq were three quaters of the countries oil is produced.

2. There is still more than 380 million barrels of crude oil supplies here in the U.S. which is substantial in my view.

3. Finally, I don’t think we will see the big drop in supplies this year after the big July 4 weekend. For example, the American Petroleum Institute (API) today (July 8) showed a 1.7 million barrel draw down. That is after typically, the biggest driving weekend of the summer. Well, we will see what the Energy Information Agency (EIA) says tommorrow at 9:30 am Chicago time. I believe it will be bearish to neutral.

MOVING AVERAGE FORMULAS AND STRATEGY GUIDE:

http://www.zaner.com/offers/?page=3&ap=mmckinne

Technically, in my opinion we are on the verge of a full blown “SUPER-TREND” down. As always, I have added my favorite technical indicators to the daily crude oil chart. The 9, 20, and 50 day Simple Moving Averages (SMA’s), the Bollinger Bands (yellow lines), and finally the Candlesticks formation chart (red and green bars, each represents one day).

Now the reason that this market is on the verge of a full blown “SUPER-TREND” down is this; the 9 day SMA (red line) has crossed down and under the 20 day SMA (green line) as the 9 day SMA points lower on a very sharp angle and the market itself trades below the 9 and uses it has resistance. The only reason the market is not in a full blown “SUPER-TREND” down is because of the 20 day SMA (green line) it is still pointing slightly higher. However, I do not see this lasting for long and I do have a sell here and I am bearish technically.

I figured this out by going back and forth from a daily to a weekly chart by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 80-85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne
CL-DAILY-SEP-7-8-14

Chart By ESIGNAL

OPTION PLAY:

I pride myself on being a “trend trader” and trying to make recommendations to my clients with options that place us in the direction of the existing trend, which in this case is clearly down.

I would recommend buying puts or put spreads with a call for a hedge or “insurance” in a 3 to 1 ratio. I would also recommend selling deep out of the money calls as well.

Remember, when you sell naked options you have unlimited risk and should have a “well funded” account of risk capital. For exact details on months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1″- Warren Buffett

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS.

OPTIONS PLAY: IS SILVER STRONGER THAN GOLD?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTIONS PLAY: IS SILVER STRONGER THAN GOLD?

IS IT TRUE THAT SILVER COULD HAVE MORE UPSIDE THAN GOLD OVER THE LONG HAUL?

SILVER FUNDAMENTALS

From a fundamental standpoint, Comex silver futures have been considered everything from a safe-haven, a flight to quality, a hedge against inflation, a counter trade to the USD, even a riskier asset at times, and an industrial metal. So it can be difficult to determine what will make this market move fundamentally. I embrace the challenge and I am constantly trying to determine what “fundamental mood” silver will be in on any given day.

I read a great article on June 27th on Marketwatch titled, Why silver’s outperforming gold and isn’t done yet and I found this article extremely useful in determining the “fundamental mood” of silver for now at least. The first sentence read, “Silver has quietly scored double the percentage gains of gold this month, and prices for silver probably haven’t topped out for the year.” Certainly that is a bullish statement and I agree because the quote, unquote move it has already made has been relatively quiet to this point. The “move” I speak of started back on June 5th when July silver bottomed out at about $18.67/ounce to a high on June 24th of about $21.17/ounce. That’s about a $2.50/ounce move in roughly 19 days…..wow!

This Marketwatch article offered some great statistics as well, “Tracking the most-active futures contracts, silvers prices…have gained roughly 13% month to date, compared with gold’s…..6% climb.” Further on, “Silver is priced as if it’s much more common than gold, but it may be much rarer than the price suggests….silver may also become even more important as an industrial metal, causing a supply shortage.” Well there you have it, if there is a shortage of supply due to manufacturing increases and silver’s uses as an energy and heat conductor, fundamentally that could be very bullish.

Fifty Most Common Reasons Why Most Futures Traders Lose Money:

http://www.zaner.com/offers/?page=7&ap=mmckinne

SILVER TECHNICALS

On the charts below I have placed my favorite technical indicators. We have the 9 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, blue line). I have also added the Bollinger Bands (BB’s, yellow lines) and Candlesticks (red and green bars), each bar represents one day of trading on these daily charts. In addition, I have drawn a couple of blue arrow lines to identify a channel.

This market is in what I have “coined” a “SUPER-TREND” up. Trend” up and a full blown buy signal here is what I need. I need the 9 day SMA (red line) to move up and over the 20 day SMA (green line) as both indicators point higher and the market trades above the 9 day SMA. We have that here. The cross of the 9 day SMA and the 20 day SMA happened on Junme 13th, but my full blown buy signal occurred on June 19th because the 20 day SMA didn’t start to point up until then. I am also seeing some bullish characteristics on a weekly and monthly chart, but that’s for another day.

So now I have 5 out of 5 of my technical indicators pointing up on very sharp angles and in my view this market is not overbought, but a healthy bull market. Let me explain, the top line of the BB’s (yellow line), the 9 day SMA (red line), the 20 day SMA (green line), the 50 day SMA (blue line) and finally the bottom line of the BB’s (yellow line) is curling up. The reason the market is not overbought in my view is because we have fallen back off of the top line of the BB’s and have come very close to touching the 9 day SMA which must remain as support to keep the “SUPER-TREND” in full effect.

I figured this out by placing my favorite indicators on the charts and studying them which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

DAILY SEPTEMBER SILVER CHART
silver-sep-daily-6-27-14

Chart by ESIGNAL

OPTION PLAY:

Since I am bullish on this market a potential play good be to buy in a 3 to 1 ratio silver calls or silver bull call spreads with a silver put for a hedge or protection in case the trend changes dramatically to the downside.

For exact details on other types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com. In addition, I am by no means “married” to the silver market. I like to make trade recommendations to my clients in the direction of the existing trend whether the market be the precious metals, energies, currencies, financials, softs, grains and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Success is measured by your discipline and your inner peace.” -Iron Mike Ditka

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS AND FEES.

OPTONS PLAY: HOW LONG WILL CORN AND SOYBEANS FALL?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTONS PLAY: HOW LONG WILL CORN AND SOYBEANS FALL?

WILL THE CORN AND THE SOYBEANS SHRUG OFF THE USDA REPORT ON THE 30TH AND CONTINUE TO DROP SHARPLY?

MY SOYBEAN FUNDAMENTALS

Fundamentally, the soybeans are no doubt in a weather market in my view. According to a great Bloomberg article today, “Damage from flooding and hail may cut planted area for corn and soybean by 2 million acres, Michael Cordonnier, the president of Soybean & Corn Advisor Inc. in Hinsdale, Illinois, wrote in a report today.” So if expectations like that heading into the report are not met, then we could see the falling knife continue in the beans.

However, as they say on LaSalle street in Chicago where the CME pit is located, “Rain Makes Grain.” So I’m in the bear camp. If expectations are not met and we get a much lower acreage number for soybeans on this USDA report on the 30th, I would expect further declines in prices or maybe sideways action even.

Options on Beans for People Who Don`t Know Beans About Options: http://www.zaner.com/offers/?page=8&ap=mmckinne

MY SOYBEAN TECHNICALS

Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMA’s. I have also added Bollinger Bands or BB’s (yellow lines) and Candlesticks (the red and green bars with the wicks). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate a chart at the click of a mouse.

My favorite technical indicators show me that soybeans are in what I have coined a “SUPER-TREND” down that started on June 9th when the 9 day SMA (red line) crossed down and under the 20 day SMA (green line) as both indicators pointed sharply lower and the market traded below the 9 day SMA. This now makes the 9 day SMA the critical resistance area for the “SUPER-TREND” down to remain in full effect. Currently the market traded up to the 9 and held. We will see if it goes on to make new lows from here. I believe the 9 day SMA will hold and the market will go on to make new lows and the “SUPER-TREND” will remain in full effect.

The most important technical that I have added to this August soybean chart is the Royal Blue arrows that form what I call a Symmetrical Triangle. You should look it up. To me it is one of the most reliable indicators that I have found. Nothing works 100% of the time as we know, but I like this one. Not always, but typically Symmetrical Triangle formations come out of the formation in the direction of the trend before the Triangle was formed. Clearly in this case, the trend was down before the Symmetrical Triangle formed. So I expect the market to continue lower as we break out of his formation.

DAILY SOYBEAN CHART
SOY-AUGH-DAILY-6-25-14

Chart by ESIGNAL

MY CORN FUNDAMENTALS

Fundamentally, there is talk of China, flooding here in the U.S., weaker U.S. dollar index futures, and speculative short covering. For the most part it’s supportive stuff for the market. On the other hand, according to a Hightower Report today(June 25th), “Overall, we view the weather forecast for the US Corn Belt as bearish, but temperatures will be important to watch as we enter July as pollination begins across the growing region. Any pattern that suggests cooler evenings should trigger a bearish reaction by the trade.” I would like to add that NYMEX Crude Oil is very comfortable over $100/barrel and if that is not inflationary then I don’t know what is. Again these are supportive or bullish fundamentals for the corn market, except for the Hightower quote.

As the majority of the grain is in the ground it would seem to me to be a weather market, and we all know that Mother Nature can be vicious and beautifully amazing all in the same week. Things to look out for would be in my opinion, drought, floods, infestation, and disease for higher prices. If not then look out below in my view.

When Does Weather Matter: http://www.zaner.com/offers/?page=6&ap=mmckinne

MY CORN TECHNICALS

Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMA’s. I’ve also added Bollinger Bands or BB’s (yellow lines) and Candlesticks (the red and green bars with the wicks). These few technical indicators tell me 8-10 different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate a chart at the click of a mouse.

These indicators don’t disappoint on this daily July corn chart below either. From a technical stand point the daily July corn chart is in what I refer to as a “SUPER-TREND” down. Why? Well here are the characteristics of what I have coined a “SUPER-TREND” down. They include the 9 and 20 day Simple Moving Averages (SMA’s). As the 9 day SMA (red line) crosses down and under the 20 day SMA (green line) as both indicators point lower on sharp angles AND the market trades below the 9 day SMA (red line) as it acts as resistance, then I see a “SUPER-TREND” down. We are now back in a “SUPER-TREND” down as the market is back below the 9 day SMA (redline). Even though on the 19th, 20th, and 21st the market rallied up to the 20 day SMA (green line) which held has resistance and was in an upward trend still, then we fell right back below the 9 day over the last couple of days.

So I’ve got the top line of the BB’s (yellow line) pointing lower on a sharp angle, the 50 day SMA (blue line) is also pointing down on a sharp angle , and so is the 20 day SMA (green line). The 9 day SMA is, pointing lower if only a little. So that is 4 out of my 5 indicators that are bearish leaving only the bottom line of the BB”s (yellow line) pointing up…barely.

I figured this out by going back and forth from a daily to a weekly chart by the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

So these are just my favorite technical indicators and my opinion on what they tell me about this July corn market and when used on a consistent basis they tell me a lot on any chart and time frame. Remember nothing works 100% percent of the time and if they did then I would be on my private tropical island right now writing this commentary.

DAILY JULY CORN CHART
ZC-DAILY-6-26-14

Chart by ESIGNAL

OPTION PLAY:

Some good plays I think could be to buy puts or put spreads with a call for a hedge or “insurance” in case the trend changes to up dramatically. I would recommend this a 3 to 1 ratio as always. Puts or put spreads give a limited risk and an in the case of outright put options, unlimited profit potential to zero for the price of the underlying future or commodity.

I believe this could be an opportunity, of course not without commensurate risk, to sell deep out of the money call options and collect premium. This is due to the current downward action or maybe the potential for future consolidation.

For exact details on strategies, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com .

It is also important to note that I am not married to a market, but to trends. So I make recommendations with options on futures and commodities like the energies, metals, currencies, softs, financials, and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “If you wait to do everything until you’re sure it’s right, you’ll probably never do much of anything .” -Win Borden

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.

OPTIONS PLAY: DID YOU SEE THE GOLD AND SILVER RUN?

Direct-312-277-0115, http://www.mmckinneyfutures.com/

TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTIONS PLAY: DID YOU SEE THE GOLD AND SILVER RUN?

IS THIS PRECIOUS METAL MOVE THE REAL DEAL?

What is causing this silver and gold to rally big today fundamentally is the fact that the Fed has decided to keep rates low and according to Bloomberg this is, “driving the dollar down and boosting demand for the metals as alternative investments.” This sounds strange and I would love to trust it as a “Gold Bug” at heart, but this is yesterday’s news-no?

From a technical standpoint, both silver and gold have taken out several areas of resistance in my view, given a buy signal, and turned into a “Super-Trend” up all in one day. Gold is up more than $45/ounce and silver is up more than $1/ounce and in my view those are massive one day rallies.

On the charts below I have placed my favorite technical indicators. The 9 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, blue line). I have also added the Bollinger Bands (BB’s, yellow lines) and Candlesticks (red and green bars), each bar represents one day of trading on these daily charts.

To qualify for a “Super-Trend” up and a full blown buy signal here is what I need. I need the 9 day SMA (red line) to move up and over the 20 day SMA (green line) as both indicators point higher and the market trades above the 9 day SMA.

I figured this out by placing my favorite indicators on the charts and studying them which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne , which is a web application that we have developed for our clients called MARKETHEAD where I get about 85% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my reader’s should check it out. Yes?

DAILY AUGUST GOLD CHART
GOLD-DAILY-6-19-14

Chart by ESIGNAL

DAILY JULY SILVER CHART
SILVER-DAILY-6-19-14

Chart by ESIGNAL

OPTION PLAY:

For exact details on other types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com. In addition, I am by no means “married” to the gold market. I like to make trade recommendations to my clients in the direction of the existing trend whether the market be the precious metals, energies, currencies, financials, softs, grains and more.

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Success is measured by your discipline and your inner peace.” -Iron Mike Ditka

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONS.

OPTIONS PLAY: IRAQ AGAIN? CAN WE REALLY TRUST THIS CRUDE MOVE?

Direct-312-277-0115, http://www.mmckinneyfutures.com/
TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

OPTIONS PLAY: IRAQ AGAIN? CAN WE REALLY TRUST THIS CRUDE MOVE?

HOW SERIOUS SHOULD WE TAKE A WTI CRUDE OIL MARKET THAT TRADES ON EMOTION AND TENSION IN THE MIDDLE EAST?

Fundamentally, yesterday with trouble in Tikrit, Sadaam Hussein’s hometown, and militants advancing toward Baghdad WTI crude has spiked in a big way. The day before yesterday, New York traded WTI crude oil blasted off on news that China was buying oil to build a Strategic Oil Preserve or SPR like we have here in the U.S. and the fact that OPEC was going to keep daily production unchanged at about 30 million barrels /day. OPEC produces about 30-40% of all the world’s oil.

Well, today the market closed lower and well off of the highs. In my view it is time for profit taking and for crude to trade on facts and not emotion. The high today for August WTI crude oil was $106.84/barrel and the low was $105.64/barrel. Currently we are trading at the time of this writing Friday the 13th at 2:18p.m. Chicago time is $105.99/barrel.

The bottom line is that the militants are NOT in the south yet and not one drop of oil in Iraq has been affected. More importantly, Saudi Arabia produces more oil than all of the other OPEC nations combined and I believe the can and will cover any shortfalls in production. Also let’s not forget here in the U.S. we are still sitting on massive amounts of crude oil supplies in my view.

MOVING AVERAGE FORMULAS AND STRATEGY GUIDE:

http://www.zaner.com/offers/?page=3&ap=mmckinne

DAILY AUGUST CRUDE OIL FUTURES CHART

Technically, on this June daily crude oil futures chart I have applied my favorite technical indicators like the 9 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages (SMA’s), the Bollinger Bands (BB’s, yellow lines), and Candlesticks (green and red bars, where each bar represents a day).

Technically, my favorite indicators show me that the August crude futures are in my coined “Super-Trend” up. The reason I call this a “Super-Trend” up is this. The 9 day SMA (red line) has crossed up and over the 20 day SMA (green line) and both the 9 day SMA and the 20 day SMA are pointing higher on a very sharp angles and the market itself is trading above the 9. The 9 is now according to my favorite technicals the first area of support and then the 20 day SMA.

However, I believe this market is extremely over bought and due for a correction and I am not one to pick tops. NYMEX crude oil is not only well above, but too far above the 9 day. My goodness, it’s above the top line Bollinger Band (BB, yellow line).

Technically, even though virtually every one of my favorite indicators are pointing higher on this chart there is something to be said for profit taking in an over bought market as well as the support areas that I believe the market will come back to. Let’s wait and see what happens as this market has moved $5.27/barrel in the last 7 trading days.

Super Trend Simple Moving Average Report:

http://www.zaner.com/offers/?page=4&ap=mmckinne

CL-DAILY-FUTURESMAG-6-13-14

Chart By ESIGNAL

OPTION PLAY:

I pride myself on being a “trend trader” and trying to make recommendations to my clients with options that place us in the direction of the existing trend, which in this case is clearly up. But, it’s over bought in my view and already made a significant move higher in a short amount of time and I am a cautiously optimistic bear right now.

I would recommend buying puts or put spreads with a call for a hedge or “insurance” in a 3 to 1 ratio. I would also recommend selling deep out of the money calls as well.

Remember, when you sell naked options you have unlimited risk and should have a “well funded” account of risk capital. For exact details on months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com

25 Option Strategies: http://www.zaner.com/offers/?page=11&ap=mmckinne

FREE QUOTE- “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1″- Warren Buffett

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS COMMISSIONSAND FEES.