A Yawner 7/20/11

Little excitement in today's activity but stay alert as big moves MAY be around the bend. A bearish inventory report and Crude still holds its own gaining slightly today. When markets do not react to bullish or bearish data that is generally a tell on the conviction in the market. We remain cautiously bullish looking for $3.50-5 further appreciation. Natural gas has traded lower now the last three sessions…we feel just a matter of time before a wash out which we would use as a buying opportunity. A trade closer to $4.25 in the September contract. Indices should gain slightly based on the technicals but we have NO exposure with clients and will remain on sidelines unless we choose to scalp intra-day. We echo the same advice as yesterday…short plays in the Swissie and Loonie with tight stops to protect from an upside breakout. The near 5% appreciation in the last three weeks in the CAD in our opinion is NOT justified. Both gold and silver closed marginally lower but they pared their losses much better than I would've anticipated. With gold currently $17 off its lows and silver nearly $1.70 off its lows. My opinion is there still needs to be more work done to the downside but I'm very impressed with the metals resilience. If gold gets above $1610 and silver $41 overnight we would no longer think a correction would come first…stay tuned. Lena hogs lost 1-1.5% today depending on the contract month. Continue to sell rallies as we think a an additional 2.5-3% dip is due. Sugar remains on our sell list and cotton on our buy list. In October sugar we anticipate trade below 26 cents and as for December cotton $1.10 maybe $1.15 depending on outside market influences. We're still anticipating more downside in the Ag complex so either get short or look to be a buyer from lower levels. Long dated Euro-dollars are the only viable play we see in the debt complex. A short in 30-yr bonds and 10-yr notes are on our radar but we feel it will take some type of catalyst to shift the momentum south…stay tuned. Risk disclosure: The risk of loss in trading commodity futures and options can be substantial. Past performance is no guarantee of future trading results. MB Wealth Corp. is not responsible and does not endorse anything outside of the content of this article authored by Matthew Bradbard; President of MB Wealth. Benzinga Recommends that you take a look at the Platinum Group Metals Limited PLG. PLG is a platinum-focused exploration and development company. PLG was up 1.14% in today's session.