Gold

The gold market is making all time highs on a daily basis. I would use extreme caution here. This is also the first close above $900 ever! I would like to see if this is a one time thing in the short term before considering a long trade. This is also the anniversary of the 1980 high.

Crude

I'd buy CLH8 at 9150 with a stop at 8890 looking for crude to test the 9800 level.

Bonds

I am looking at a synthetic put in the bonds - selling the future at around 11820 and buying the Feb 117 calls at 160, this has a risk of about 10 bond ticks ($312.50) expiring next Friday the 25th.

Hogs

Pick a month, if you're bearish the front month Feb is the place to be. If you're bullish looking to buying June or July hogs, July has gotten quite over-extended. Try and buy the LHM8 on a pullback to 7405 risking to 7275 looking for a possible test of the Dec 10th high.

US Dollar

Everyone is bearish the dollar, however, I am going to go out on a limb and be a little contrarian. I'd consider buying it at these levels with a stop under the lows of Nov. 23rd leaving the target open at this time.

There is risk in trading futures and options. Use of contingent orders such as "stop loss" or "stop limit" orders which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders.

March Euro Currency

So far the ECH8 is having trouble punching through the 150 level. Many believe (myself included) that this level may be the uncle point for the Europeans to start looking at central bank interventions. In the February options based on the March futures, I like buying a ECG8 147/144 put spread for approximately 60 points ($750) with a 5:1 risk reward ratio. For those looking for a little more time on the trade, look at a simple long ECH8 144 put for approximately 60 points as well.

March Crude Oil

Crude oil seems to lack a strong sense of direction at the moment. Many commodities and metals are making all time highs, but crude is not following suit. This to me says we’re headed lower baring any new geopolitical news. In the March options, I like buy a CLH8 89/85 put spread for approximately 100 points ($1000) with a 4:1 risk reward ratio. For those willing to take the upward risk, you can sell a CLH8 105 call to pay for over half of this premium. Yes, this potentially has unlimited upward risk, so only well capitalized accounts should make this trade.

May Corn

The freight train that is the corn market continues full steam ahead. And we all know what happens when you step in front of a freight train! However, a significant pull back in the corn market seems to be high probability at some point. Thankfully the May corn options have over 100 days until expiration. I like buying a simple CK8 450 put for approximately 7 cents ($350). Be patient with the trade. Continue buying puts (at higher strikes if the rally continues). I believe your patience will be rewarded.

March E-Mini S&P 500

Hardly a spectacular start for US equities this year. In an election year though, one has to be an optimist. In the February options which are based on the March futures, I like the following call ratio: +1 ESH8 1430 call, -2 ESH8 1480 calls for approximately 9 points ($450). The trade maximum is 50 points or over 5:1. Yes, there is some upward risk if the market rockets out of here above 1530, but that seems like a lot of real estate to cover in just over 30 days.

March US Treasury  Bonds

Treasuries have been climbing on the recent weakness in the equities markets. I am looking for a pullback into the lower 116's in the March futures contracts. In the March options for 40 days to go until expiration, I like buying a USH8 116/114 put spread for approximately 30 points ($468.75) with an over 4:1 risk reward ratio.