Saturday, February 27, 2010

CTS Spotlight for the week of February 26, 2010

Hello and welcome back to CRI's CTS Spotlight



02/26/10: Most of what was said in last weeks post remains in place. The US dollar is slowly working higher, while most commodities are working lower. Last week I pointed out a top in the Eurodollar market and have begun to accumulate Dec. put options there. And as pointed out, Cotton prices have moved higher aggressively. This week the most notable market appears to be Lean Hogs (refer to this week's commodity blog entry and TTA - Lean Hogs). The breakout suggest a move into the 90's and I will take a really good look at the Aug. 88 calls over the coming week.

That's all for this issue of the CTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com

Sunday, February 21, 2010

CTS Spotlight for the week of February 19, 2010

Hello and welcome back to CRI's CTS Spotlight



02/19/10: A raise in one of the US Fed's key lending rates has given further credibility to the bottom in the US dollar and presented us with a short entry signal in the Eurodollar market (refer to TTA Special report issued 02/19/10 on Eurodollars and the chart above). While I am not looking for a substantial move higher in the greenback, a nice technical rally to both wash out the weak hands and satisfy some basic technical objectives seems likely - and an event like the US starting to bring its short term interest rates back to 'normal-icy' might just be the cause. Most commodity prices have remained stable to slightly weaker in the face of the US dollar rally with the noticeable exception in Cotton and the meat complex. We know meat prices move in opposite to grain prices so that action isn't a surprise. However, Cotton's move to new highs is eye opening in this market and suggests a further move into the .80's is most likely.

That's all for this issue of the CTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com

Sunday, February 14, 2010

CTS Spotlight for the week of February12, 2010

Hello and welcome back to CRI's CTS Spotlight



02/12/10: After a period of little change, the currencies are trending once again. While I am not looking for substantial gains in the greenback, this long overdue bullish correction ought to satisfy the 50% rule and relieve its current oversold condition. At the same time, gold and silver prices have topped, lending further support to the notion of a general US dollar rally. Commodity prices in general should come under pressure in the face of a rising US dollar and that can be clearly seen currently in the grain, softs and energy complex. Because of its inverse relation to grain prices, meat prices have firmed and look to be heading higher after a long period of weakness.

That's all for this issue of the CTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com