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I am surprised that you didn't back spread that position. I have 69.30 as a
target on this up leg. There is a problem at 69 and 69.45. both previous
peaks on the short term charts. the future is trading with a 22 volatiliy and
the options are trading between 18 and 22. I am looking to buy the calls on
this retracement and then short the future for a delta neutral position. Then
trade the future against the option position. Ira.
nwinski wrote:
> Ira wrote:
>
> > Is this just a bounce? How high it will go can not be determined at
> > this time on a long term chart. but on the short term charts there are
> > upside targets. Has it bottomed before reaching the very long term
> > targets of 59.50 and 61.50? They only had a 60% probability. Ira
>
> More importantly, what strategy should you employ to take advantage
> of copper's current position
> regardless of its next move?
> I am long two contracts from before the breakdown thru the 70 - 72
> cent support level. Because old support becomes resistance, I will sell
> 1 contract on a rally to the 72 cent area, with the expectation that there
> will be a re-test of the recent lows. However, should the market continue
> higher, I will be prepared with my 1 remaining long contract. . On the
> other hand, should it continue lower, I will buy another contract in the
> low 60s, because there is MAJOR LONG TERM support in the 55 - 62 cent
> area. .
> Bottomline, worrying aboiut characterizations such as whether this is
> a bounce, a bear market, or bull market, etc. make for good conversation
> over a couple of beers. But, if you want to make money trading, you need
> a well defined trading strategy which turns each probable move of the
> market to your advantage.
>
> Strategically,
>
> Norman
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