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For: Monday 03-29-2010

Triangulation

The July orange juice has reversed sharply after posting a double top pattern. The market has sold off and now closed through the Apex of the previous triangle. This is triangle failure and we will look to buy put spreads as I believe the market should continue to work lower from these levels.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: Buy July 135-120 put spread and sell the July 160 call for a debit of 340 points on a limit. Risk four hundred points on the trade initially. (>$600 not including commissions and fees), Look to take profits if the market trades to the 12750 area.