I think it appropriate to discuss this topic as it relates to recommendations that I issue in the soft markets.

If you notice, I purposely base my soft market recommendations in ”units” rather than the number of contracts. My reasoning on this is to enable any reasonable size account the opportunity to participate provided it is within the account holders risk tolerance levels and trading goals. Commodity trading involves substantial risk and managing that risk holds a high priority.

A typical recommendation of mine will therefore be in units. How many contracts should comprise a unit is dependent on several factors. Both the size of the account and the risk tolerence level of the customer are two important factors that should dictate the number of contracts that comprise a unit, but a unit can be as small as one contract, or multiples, say five, ten twenty, or even larger.

Typically, I make every effort to limit the risk by employing option strategies that tend to try to limit the risk. Occassionally, I may use a combination of futures and options. My goal is to provide appropriate risk reward opportunities by managing risk effectively, but seeking potential for gains that make trading worthwhile.

I’m available for questions. Thank you, Jurgens

Technical’s show that the S&P has a small resistance spot at 1005 but can easily move through this zone. The question is how high can it go 1100? We need a slow steady gain but first we could use a small sell off to get the dollar up. A recession is no big deal and usually last 1-2 years but job losses and inflation can occur long after the recession is over. No market trades straight up and if it does we should question it! That is the guru’s job to question everything.

I will be off the floor today to return tomorrow. Subscribers could have taken off two positions in corn yesterday leaving only 1 unit of long delta left.
The markets are looking to pull back a bit from yesterday’s upside charge. Nothing dramatic with only a 30% retracement expected. Crop ratings remained flat for beans with corn showing a 2% decline. Nothing exciting there. Crude is lower dragging all markets back on this “turn around” Tuesday.

A slight backing off to start the overnight trade with FC stone crop estimates offering downside momentum for corn versus beans. This offers major potential in the SX-CZ spread. Keep an eye out.

Follwoing a relatively quiet fundamental weekend the Sunday night trade points to a seriously higher start to the week. This is early but we aare looking at 20+ higher for beans with corn and wheat up 6-8. This is cotninued technical buying in spite of congressional fears. The overall sentiment is we are too oversold in relation to other commodity groups…and they’re right.