Back to the Futures!!

It's time to forget about Hurricane Wilma and get back to business. That is, the business of trading the futures markets. If you are currently trading any commodities and you aren't making money, please email me at dale@trendsincommodities.com. I'll be happy to discuss your current trading strategy and help you fine tune it for maximum profits.

For those of you who are new to this blog, I trade the following markets daily:

Stock Index Futures
Interest Rate Futures
Grains
Precious Metals
Cash Foreign Currencies (www.fxsol.com)

That's all I have time for and, after 20+ years of fine tuning my own approach, I've found these markets to be most favorable to my brand of trading.

So, here's my take on all of these markets. These are my positions, this is my opinion and my expectation for the markets listed above.

Stock Index Futures

I trade the DOW and the Russell 2000 futures and I remain EXTREMELY BEARISH on both of these markets. My position as of 3:30 PM EST is as follows:

SHORT 25 DEC $5 DOW at 10527

SHORT 15 DEC $5 DOW at 10497 (Last trade - 10540)

I'm slightly underwater on this position but I believe it will be short-lived. I'm looking for a break all the way back to the mid-October lows at the very least. I won't be surprised to see the DOW trading below 9500 by the end of the year. My primary (proprietary) oscillator is pegged at the most overbought (bearish) reading possible so I'm selling stock index futures like a madman. The last time the DOW futures got this overbought the market fell over 500 points. Tomorrow's NFP number, unless it really is a shocker, should have little effect on the stock market and will probably be the catalyst for an ugly end to an otherwise positive week for stocks. The memory still lingers from 1987 when an ugly Friday turned into Black Monday and the Dow fell over 500 points in a day. And that was when the market was a fraction of the level that it trades at today. So, there's my position. If you are interested in trading either of these markets real-time with me, send me an email at dale@trendsincommodities.com.

I'll bring you up to date on the other markets in my next post.

Dale F. Doelling
Chief Market Technician
Trends In Commodities