Market rankings for the option trader
Brad King of King Commodities - - Fri Jan 11, 11:22AM CST

Friday commodity market rankings 1/11/19, By Brad King

What catches my eye after a violent end to 2018? For starters, I have noticed the shallow to non-existent downward move in agricultural markets (grains & livestock) while crude oil and equities plummeted throughout the month of December. Sugar has also performed well when measured against other commodities. I recommended buying sugar calls on weakness in Tuesdays newsletter. There was a nice dip yesterday and it looks like this week sugar should close on a positive note.

I would also argue that the moves in crude, equities, and bonds were a bit excessive. You may wish to use the recent strength to sell 30-year bonds. I would think it likely for treasuries to grind lower over the next several months.

You can use weakness to buy hogs today. The long-term trend looks to be positive and we have seen a three week correction that may have ended last week.

Would you rather trade long term vs short? Options instead of futures? Why wait...Open your accountHERE.

Give me a call at 928-773-0472 if you have questions regarding my ideas or would like to discuss my services.

Bullish commodity rankings

1.Sugar - Hold long calls.

2.Lean Hogs - Buy call spreads.

3.Corn - Buy calls

3.Gold Hold long calls

Bearish commodity rankings

1.RBOB Gasoline Hold put spreads.

2.Cotton - Hold long puts.

3.30 Year Bonds - Buy put spreads.

4.Wheat - Hold long puts.

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Happy trading.

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