This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Targeting portion from earlier this morning for Wednesday, February 18th.
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Positions we have on:
- LONG the May SUGAR from 14.50
- LONG the May SOYMEAL from 323.0
There are 3 additional markets that I will be getting involved in this week.
We are now in the MAY contract. This market has been on a very impressive run since Jan 26th. We are now bumping up against old resistance in October around this 64.00 level. If the market is going to continue to trade higher, I’ll keep watching. BUT, if it turns around and starts to break lower, I want to be involved. Selling on a stop at 64.00 in my opinion is a good idea. Risking 100 points ($500.00) would be where I would start. I’d like to see if we could get back to the bottom of the old congestion of say…60.00?
Another market that is fighting with some recent resistance, I am looking for a break-out to the upside. I like the idea of buying on a stop up around 81.00 if we start to push higher. The chart shows some room to run to 83.20 as the 1st target spot. While the risk would be more monetary, I like 60 points or $600.00 to get started. I would look to move this stop order as soon as possible.
A March 80.00 put with 37 delta would cost roughly $570.00 You could have this on in addition to your stop. This would reduce your margin and gives you participation if it turns around and trades lower.
KANSAS CITY WHEAT:
I am looking at the May contract. Yesterday’s price action right on the open has me intrigued. The market was turned away once already from the late September support but failed to get that momentum push lower. Over the past week, the KC Wheat market has also been bouncing off the 20 day moving average. I will be willing to give this possible 2nd attempt a try. I like the idea of trying to get short this market here near 5.65 with a risk of about 12 cents above the February 6th high. The first area that I will be looking for if we do indeed get the sell-off would be the 5.40 level and on to 5.20-ish?
*** Look for a break of 5.50 to add an additional contract ***
Call the desk or email your DT broker if any of these ideas interest or if you need assistance putting some of your own ideas to work
Ring that mid-week bell…
LET’S DO THIS!
Learn Futures Technical Analysis from a Pro with The Cullen Outlook
The Cullen Outlook is a futures trading newsletter for those wishing to follow the moves of Brian Cullen, an experienced technical trader. He’ll identify charts setups, provide direct trade recommendations and plans, and share other useful insights to help you become a better technical trader.
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