Monday Morning

Mon Jan 30, 2012 12:43pm

Commentary

I litterally got back into the office from Miami about 1 hour ago and have already recorded and posted a new Webinar. My daily Videos will be out later this afternoon as well. As I want to get this update out before too much time gets by, I will write more of an update tonight.

Currency markets still look bullish, but obviously what occurs with Greece is going to have a large impact on prices soon as some think that things will come to a head this week. Even if Greece accepts a coupon rate that creditors accept, there is a cloud looming over Greece concerning how Germany and the IMF think Greece is handling the austerity budget that needs to be put in place. Germany most likely will be pulled into funding Greece, but not easily anymore as Greece is showing it cannot manage its finances.

Bonds are notes look to me like they are once again pricing in doubts about a good outcome in Europe.

ZLH12(March Soybean Oil) - 1.07 at 50.52. Medium Risk Traders who followed my recommendation came into the day long at 51.60. Per the evening update, you should have been stopped out at 51.09 for a loss of 51 points or approximately $306 per contract.

EXSH12 (March Mini Soybeans) - 27^6 at 1191^6. Medium Risk Traders; sell short at 1204^2. If filled initially use 1231^2 stop. Take 50% profit at 1179^0 and move your stop down on your remaining short to breakeven including commission.

MGCJ12 (April E-Micro Gold) - 2.4 at 1733.3. Lower Risk Traders; buy long at 1662.5. If filled initially use 1652.0 stop. Take 50% profit at 1740.5 and move your stop up to breakeven including commission on your remaining long position.

Definitions of Initial Dollar Risk:

Low-Risk Definition:
A Low Risk Trade is defined as one having an approximate initial dollar risk of $0 to 150.

Medium-Risk Trades Are Broken Down Into 3 Categories:

Lower-Medium Risk:
A Lower-Medium Risk Trade is defined as one having an approximate initial dollar risk of $151 to $250.

Medium-Risk Trade:
A Medium-Risk Trade is defined as one having an approximate initial dollar risk of $250 to $350.

Higher-Medium Risk Trade:
A Higher-Medium Risk Trade is defined as one having an approximate initial dollar risk of $351 to $500.

High-Risk Trades:
A High-Risk Trade is defined as one having an approximate initial dollar risk of $500 to $600.

All dollar-risks are calculated with no allowance for slippage of fills, gaps in the market and commissions.

NEW RECOMMENDATIONS:
New Buy Recommendations are highlighted in Green.

New Sell Recommendations are highlighted in RED.

Every New Trade Recommendation includes a specific entry point, recommended placement of a stop(s) and updates on the profit objective(s).

Stops on Futures Contracts

An initial Stop Order Price is typically provided and is part of the original trade recommendation. A 50% profit objective is also typically provided. If the profit objective is achieved, instructions on what to do with the remaining contract will be provided. You should be sure to cancel your original Stop Order and place another Stop Order following the written recommendation.

Stop Orders on Option Contracts

Some futures contracts that have “Option Contracts” do no accept straight stops on Option Orders. Others do. You have to check which ones do with the Ira Epstein & Company Margin Department, or your mentor from the Futures Academy to find out what market takes what. If stop are accepted, fine. If not, if the price where a recommended stop should be placed is hit and the market does not accept a stop order in that market, once the price is hit, place a market order to get out once that price is hit. We will look at Time and Sales along with fills that other customers receive to alert you to where fills came in for markets where Stop Order in options are not taken.

Contracts Per Trade Recommendation

The Futures Academy teaches that you should, if you are able to, enter with a minimum of 2 contracts per trade recommendation. That is why we so often mention “Take 50% profit at__and move stop on remaining (long or short) to breakeven including commission”. If we are wrong before a profit is seen, you are at risk on initially on 2-contracts, not one.

DISCLAIMER Futures and Option trading involves substantial risk and is not a suitable investment for all types of investors. This Futures Market Report is strictly the opinion of its writer. Information is obtained from sources believed reliable, but is in no way guaranteed. The author may have positions in the markets mentioned including at times positions contrary to the advice quoted herein. Opinions, market data and recommendations are subject to change at any time.

Past Results Are Not Necessarily Indicative of Future Results