My honest advice is to be very very careful over the next 5 weeks. Traders who had good years are backing off, decreasing their activity, planning for 2011.
The markets are thin at best, with less liquidity translating to more risk.
One thing I have learned, is that over the last 22 years of trading, generally the next 5 weeks is a mine field. But that’s my personal opinion.
I would have very few positions left on, and i would not be very aggressive. That’s my advice.
That being said, there are still opportunities.
Overnight, CZ came within 1/2 cent of my upside target at 544, with a high at 543 1/2. I am still long a small amount from 511, with a 30 cent profit, or $1,500 a contract profit. A nice bonus for staying disciplined and not getting too bearish when we looked like we might get below 5.00
I continue to look for a bigger pull back in the Stock Indexes. For the cash Dow, I am short, looking to cover shorts at 10,900 and 10,700. In the Cash S&P, I would cover shorts at 1155 and then look to get long at 1133.
On a separate track, Look at Feeder Cattle. They have been on an absolute tear, challenging historic highs at 1.20. I like buying some cheap puts below on this rally, positioning for profits on the inevitable correction.
Ditto for Fat Cattle, we are up against resistance at 102.50, if we pop up to 105-106, you have to step in and get short.
Good Trading
Happy Holidays
