Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729
Follow me on twitter@commodityinsite
Commodities per se, as measured by the CRB Index have tumbled badly since November 24. The Index was slammed hard yesterday and leaking mildly today. Themild leak today has the widely followed index back to levels last seen on October 20. Should the Index, now trading around the 184.32 level drop below 180.00, it would represent a major breakdown for commodities per se.
There has been so much weakness with most commodity markets the past few weeks that selling further weakness makes my head hurt and my palms sweat. But there is a trade staring us in the face that may offer those that are well margined, bold and bearish a low risk opportunity. The trade I am suggesting is to sell short the March Russell 2000 Mini contract right now.
The range today for the March Russell is 151650 to 151140 with a last of 151330, up 220 for the day with the December contract showing a similar. Shorts placed here and now should have stops at 151700, intra-day basis March futures. While the Russell is a tad higher the S&P and Dow are actually in the red. Should the Russell close lower by any amount, it should, could or may flash bright red ink tomorrow and going into the weekend. But my work does show the Russell is about to start leaking badly.
The time is 8:16 a.m. Chicago
This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solutionss Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.There is no guarantee that the advice we give will result in profitable trades.