This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook, published on November 05, 2015.
December Chicago WHEAT: (ZWZ5)
I was waiting to either buy 4.90 or sell 5.25 With yesterday’s sharp move higher, here we are!
I like the idea of selling this market here, near 5.25 or better. We have been range bound on the chart over the past few months. In my opinion we stay in there and this coil gets tighter ahead of next week Tuesday’s WASDE report. This won’t be a very long trade to be involved in as I think a 10 cent stop is plenty of risk and an objective of 25 cents is the most we could see over the next 3 trading days. (I would be out of this trade ahead of that # on Tuesday morning.)
SELLING at 5.25 (GTC) …settled at 5.22 1/2
- Risk will be the 5.37 level …($600.00)
- Objective will be the 4.85 level …$2,000.00
- Short Term Objective will be the 5.05 level …$1,000.00
Initial margin is $1,925.00 per contract
*** Mini contracts are available (XWZ5 is the symbol) and they are 1/5 the size of the standard contract ***
Have a look:
It may not be possible to limit losses to the exact loss limit depending upon market conditions and the possibility of limit moves.
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