This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Update portion for Wednesday October 15th.
To gain access to these charts and all of the trade ideas in full, sign up for a complimentary 30 day trial.
I will be hosting another CHART WATCH! webinar this afternoon. The turnout has been tremendous since we dusted off the idea and brought them back and I thank you! I hope to see you there.
Reserve your seat: https://www.danielstrading.com/webinar/chart-watch-with-the-cullen-outlook/
Just a few markets to touch on that we are not already trading as we finish off the back end of the week…
Looking at the December Soybean Oil and the 32.75 – 33.00 level to get SHORT again. We are down 56 this morning already to 32.31 but we may see a rally today or tomorrow. The risk could be the same above the recent highs around the 34.00 level. I would like to see the congestion bottom fail to hold and perhaps we could see a break to 31.00 (see attached BEANOIL chart)
Staying in the Grain complex, take a look at the December Wheat. I wanted to wait to see if this latest attempt at taking out the 5.10 level gwould get rejected. The high this morning was 5.10 3/4 and it last traded at 5.05 Thats good enough for me! I like the idea of getting SHORT. You could use the standard and risk 10-15 cents OR sell a couple mini contracts and risk about 25 cents. The old support level comes in at 5.45 If we see a break below the 4.90 level, you could look to add an additional contract. I think the objective would be test of the recent lows of 4.70 (see attached WHEAT chart)
I wanted to send out a trade idea in the Euro Currency yesterday but the day got busy and the idea got away from me. So lets take a look at it today, if it doesn’t happen so be it. But if we see a rally back to 127.00 – 127.25, I like the idea of getting SHORT. The failed break above 127.00 last week has had me looking for a spot to sell and I would like to keep the risk as close to the 128.50 level as possible. The mini contract will be perfect as it is ½ the size of the standard or $625.00 per 100 point move. (see attached EURO chart)
This may sound like a broken record but if the November Natural Gas market gets back above 3.85, I like getting LONG. Buying on a stop in my opinion would be a great idea. It last traded 3.84 (up 2 cents) this morning so we may see it break above back into that channel. I STILL think that this 3.85 – 4.10 should continue to be on your radar. That being said, if we fail to hold the 3.80 -3.75 level, we could see a nice move lower. I don’t know if there will be an idea going out on that today (alot will be going on and it will be busy!)….so keep your eyes open and trade it accordingly. (10 cents on 2 mini contracts is $500.00)
Finally, I will be entering into a BULL Crude Oil future spread this morning. We have seen quite a sell-off in the Crude market recently. Just over $13.00 since the 29th of September! ($94.00 to $81.00) I do not want to try to catch a falling knife by stepping into a futures contract but I do like the idea of trying to go LONG using a futures spread.
BUYING the December contract and SELLING the March contract. The premium right here at 1.15 to the buy side of December looks good. If you look at the attached CRUDESPREAD chart, we will want it to trade higher while risking just under the recent low near 0.80
Positions that we have on include: SHORT the December Lean Hog from 94.00 (this morning at 94.05) and SHORT the March Sugar from 16.90 (this morning at 16.88) Both of these positions are still trading at near our entry prices, so if you have gotten on board yet and were thinking about it…Carpe Diem! We will continue to monitor and manage accordingly.
Sidenote: I sent out a Market To Watch about the 30.60 level in Cocoa on Monday night. Great job to those who jumped back in around there after that email and traded it again…well played! (Manage accordingly)
For the rest of us, I want you to pay attention to the same 30.60 level that we were involved in a few days ago. It is trading at 31.20 this morning. If we should see this market get back down there before the weekend, I would like to participate LONG from somewhere around that level, risking to 30.00
Sidenote #2: It hasnt set up yet, but I like the upside in the Cotton market.
I hope to get back on the Tuesday – Thursday schedule next week. I have been stuck on the Wednesday only routine as of late. Anyhow…Ring that mid-week bell! My guys can call into the desk or you should contact your DT broker if you see anything that you would like to get involved in today.
LET’S DO THIS!
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.