I want to talk to our readers about an issue I believe in as a philosophy for trading. With the large leverage you get in commodities, you should always have a very high risk, very high return trade on. I like to use options with a big risk trade, and as most options expire as worthless you should trade accordingly.

As I see it, the call for bad weather on the coming hurricane season is very high in the OJ Belt. So the following trade should be entertained for a long term trade in the OJ.
We are buying the following calls:

Sept $2.00 calls

Remember that this is a reach-for-the-fences trade and even though we have done very well in OJ this year, this should only be done with a small amount of the profits we made in the last OJ trade.

Sugar:

The chart clearly says stay out or hold shorts if you have an edge.

Sugar can stay in a tight range for years, so relax and don’t buy this market for now.

Cotton:

Cotton just loves spike bottoms. I hope this is the start of a climb back to the recent highs. I still like cotton at the 4700 level and we are long some cotton now.

Coffee:

Ok here is the question:Is this a short-term top (and we are headed back down to test the lows) or is this pause?

We’re headed back down. If you follow the Elliot Wave System, this is a no brainer. If you’re still long tighten up your stops and stay in touch.