Market rankings for the option trader
Brad King of King Commodities - InsideFutures.com - Thu Jan 04, 12:09PM CST

Wednesday commodity market rankings - 1/3/18, By Brad King

Over the holidays we have seen just about every bearish market turn positive over the short term. Momentum is up in most of the weakest markets. I am not in a hurry to add too much exposure to any short positions, but giventhatgrain options are still fairly cheap. Producers and speculators might want to add some risk here.

Since our last update, the heating oil and crude have moved significantly higher. Today the obvious adjustment is to roll up in-the-money energy options to take some money off the table while staying long.

I still like positions in the Dow Jones, Nasdaq, live cattle, and cotton. These markets seem to be still be trending higher. I am looking for a momentum change in soybean meal but for now it appears to be the only grain that doesn't want to shift my momentum measurements to the positive side.

If you would like to position for long term trends in 2018, give me a call at 928-773-0472 or you may open an account HERE. Account applications can be completed at your convenience 24 hours/day.

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Bullish commodity rankings

  1. Heating Oil - Roll calls higher.
  2. Dow Jones/Nasdaq - Hold long calls.
  3. Cotton - Hold long calls.
  4. Live Cattle - Hold long calls.
  5. Soybean Meal - Exit
Bearish commodity rankings
  1. Natural Gas - Roll up put options to add risk.
  2. Coffee - Hold long puts.
  3. Wheat - Roll up put options to add risk.
  4. Corn - Hold long puts.
  5. Silver - Hold long puts.

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