soybeans futures trade idea – cullen outlook- formation finder
This is a sample of Brian’s email newsletter, The Cullen Outlook.
This is from the Trade Idea portion from Wednesday July 27th.
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I like the UPSIDE in beans here. I think the fundamentals are there (weather market, tight supplies in South America, important Aug month for growing, etc) but I also like the fact that we have been under 10.00 for 3 trading days and we are trying to carve out a bottom in my opinion and I really like how we held the 9.60 level from Monday’s close to Tuesday’s open with a follow through bounce yesterday.
2 ways to play this: (minis or a call spread)
mini contracts: (blue and red lines)
BUYING 2 mini contracts at 9.85 (GTC) …last traded 9.87
Risk would be just under this week’s lows at 9.50 …($700.00 on 2 minis)
Objectives would be open for now. We will likely just trail the stop order once filled.
Initial margin is $682.00 per mini
Call spread: (green lines)
BUYING the November 9.80 / 10.80 call spread for 30 cents ($1500.00) or better. Trading at roughly 29 cents now.
If the call spread dropped in value by 15 cents, I will look to exit.
The risk would be 1/2 of the premium paid or about $750.00
Check out the November Soybean chart… (click to enlarge)
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