WELCOME TO CLEARTRADE'S NEWSLETTER
ClearTrade's trading recommendations and weekly commodity newsletter was first published in October 1998. Since that time, our research has continued to evolve into an important source of technical insight for many traders. Our goal is to provide traders with a 'game plan' to prepare for the trading day and week ahead.
ClearTrade's technical analyst, Scott Joss, is a veteran futures trader with twenty-eight years experience on and off the trading floor - as a pit trader, account executive handling arbitrage for Smith Barney, former member of the CBOT and presently an IB. Scott prepares technical analysis in selected market groups when an opportunity presents itself and not only develops trading modules on selected trading opportunities but 'feeds-forward', advising traders what to expect and how to react.
 At ClearTrade, we think it’s helpful to speak directly with traders who have requested our research and/or may be interested in establishing an account with us. Understanding your trading needs and goals is important. And we think you should have an opportunity to get to know who we are and what we offer on a one to one basis.
ClearTrade Contact Phone Numbers

800-493-4444
773-561-9777
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• TECH TALK
•  CHART WATCH 
•  CURRENT 'MONTHLY' RECOMMENDATION
•  FUTURES WATCH
•  COMING EVENTS AND DATA RELEASES

TECH TALK by Scott R. Joss (Non member C.T.A)*

When new traders read my newsletter, they often ask a simple and basic question:  Can I exit my trade at any time - or should I strictly adhere to the newsletter?
The answer must come from you, the trader.
Questions to ask yourself:
1) Experience in trading:  Do I understand the product and its personality?
2) Risk tolerance:  Do I understand and accept the risks involved before entering a trade?
3) Emotion:  Can I take all emotion out of trading?  How much discipline and patience do I have?
4) Knowledge:  Do I study different trading techniques and charts?
5) Greed and fear:  If I exit the trade, where should I re-enter?  If I stay in the trade is there more money to be made?
When we trade, many quirks and flaws in our personal makeup are revealed. Can you accept this and recover quickly?
Although I map out a trading plan - not every trade goes in a straight line.
You must still use your own trading skills and map out your own trading plan utilizing the parameters I’ve provided.
Yes…. that means you still need to do your homework. Trading is not an easy task. 
Even though I’ve been trading for 28 years, my need to create new trading techniques and adhere to sound trading habits continues to grow.
Each week I map out several trading plans simply as a blueprint. The need to readjust to market conditions is constant.
My clients are aware that I will do 80% of the research - but they need to do their 20%.
Part of their 20% is not only to study the charts but the decision to stay in, exit a trade - or move their stop. 
So the answer depends on your trading skills and pocketbook. 
My old boss, who was a very successful soybean oil trader, once told me:  “he who takes a profit today - lives to trade another day.”
I don’t usually include commentary in the newsletter because what I think doesn’t matter… however, what the markets say always matters.
Yes…. all of the research and recommendations can be used over and over again - within a reasonable time frame.

JUNE BRITISH POUND (BP5M)
Last week I began developing a trading plan for the British Pound.
The Pound has a weekly and monthly recommendation connected to it.
The long-term chart of the British Pound has been in an approx. 4-year price advance that began from lows of 1.3664 to recent highs of 1.9431.
The June British Pound contract has been in an approx. 4-year price- advance that began from lows of 1.3700 to recent highs of 1.9317.
There are no unfilled price gaps above the current market price.
There are four unfilled price gaps below the current market price. The most recent unfilled price gap is between 1.6282 and 1.6334. 
For May, the June Pound has a monthly recommendation: buy when trades 1.9169 - Sell when trades 1.8612.
Last week's high was 1.9046.
Last week's low was 1.8850.
WHAT DID TRADERS DO LAST WEEK?
On 5/2/05, the June Pound posted a weekly sell recommendation at 1.8945.
Traders were advised to establish a short position at the weekly sell signal of 1.8945, placing a resting stop and reverse order at 1.9128.
On 5/3/05 and 5/4/05, some traders exited their short positions between 1.8862 and 1.8882.
On 5/5/05, the Pound posted a 61.8% fibonacci retracement at 1.9046, which was calculated from lows of 1.8850 to highs of 1.9168.
Traders were advised to either add to their existing short position or establish a short position at 1.9036, placing a stop at 1.9169.
On 5/6/05, the Pound again posted its weekly sell signal at 1.8945.
Traders were advised to either add to their established short position or establish a short position, placing stops for this position only above 1.9046.
WHAT SHOULD TRADERS DO NEXT WEEK?
Trader who established short positions above the weekly sell signal of 1.8945 are advised to move all stops above last week’s high of 1.9046.
If the Pound posts a new weekly low below last week’s low of 1.8850, traders are advised to either add to their existing short position or establish a short position, placing stops for this position only above 1.8966.
Our first objective will be 1.8811.
If the Pound posts a close below 1.8706, traders are to prepare for an assault on the monthly sell signal at 1.8612.
If the Pound posts a monthly sell signal at 1.8612, traders are advised to either add to their existing short position or establish a short position, placing all stops above 1.8945, which was the weekly sell signal.
Our second objective will be a challenge of recent lows at 1.8524.
If the Pound posts a weekly close below 1.8524, traders are advised to either add to their existing short position or establish a short position, placing all stops above 1.8612.
Our third objective will be a challenge of February’s lows at 1.8389.
If the Pound posts a weekly close below 1.8389, traders are advised to move all stops above 1.8524.
Our long-term objective will be to fill the previously mentioned gap between 1.6282 and 1.6334. 
DAILY CHART:
http://bohl.minot.com/d_Chart.cgi?BP05M
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WEEKLY CHART:
http://bohl.minot.com/w_Chart.cgi?BP
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JUNE CRUDE OIL (CL5M)
Three weeks ago I began developing a trading plan for June Crude Oil.
Last week I discussed Crude had posted a major trend reversal.
June Crude has been in a multi-year price advance that began from lows of 22.05 to recent highs of 59.20 (59.32 if you include night trading).
Crude has no unfilled price gaps above the current market.
Crude has eight unfilled price gaps below the current market price. The most recent unfilled price gap is between 45.50 and 45.75.
Crude Oil has developed a bearish ‘double top’ at 58.60 and 59.20 highs forming a bearish ‘M’ formation.
On 3/17/05, Crude posted highs of 58.60.
On 4/04/05, Crude posted highs of 59.20.
Crude on the daily chart shows a bearish ‘M’ formation.
The middle of the ‘M’ is at 53.40, which is major resistance.
Last week's high was 52.23.
Last week's low was 48.80.
Last month's high was 59.20.
Last month's low was 51.60.
WHY IS THERE A CHANGE IN TREND?
On 4/04/05, Crude posted a higher monthly high at 59.20, which was higher than March’s high of 58.60.
On 4/30/05, Crude posted a lower monthly close which was lower than March’s low of 51.65.
Friday’s monthly close was at 49.72
What this means is June Crude posted not only higher highs than the previous month but also contract highs. Then, Crude posted a lower low than the previous month and settled below the previous month’s low, confirming a trend change.
Major resistance is at 53.40
NOTE: Crude must continue to close on a weekly - but more importantly - on a monthly basis below 51.60 or the previously mentioned trend reversal may be a bear trap.
WHAT WERE TRADERS ADVISED TO DO LAST WEEK?
Traders who established a short position at 52.70 were advised to hold their position and leave their stop above 55.90.
Traders who established a short position at 51.70 were advised to hold their position and leave their stop above 55.90.
Traders who established a short position at 49.70 were advised to hold their position and leave their stop above 55.90.
WHAT SHOULD TRADERS DO NEXT WEEK?
Traders who established a short position at 52.70 are advised to hold their position and move their stop above 53.40.
Traders who established a short position at 51.70 are advised to hold their position and move their stop above 53.40.
Traders who established a short position at 49.70 are advised to hold their position and move their stop above 53.40.
If Crude posts a close below last weeks low of 48.80, traders are advised to either add to their existing short position or establish a short position, placing all stops above 51.60.
Our objective will be 46.15.
If Crude posts a close below 45.75, traders are advised to either add to their existing short position or establish a short position, placing all stops above 49.10.
Our long-term objective will be 42.82.
On the flipside…
If Crude were to post a weekly close above 51.60, traders are advised to liquidate all short positions.
If Crude were to post a weekly close above 53.40, aggressive traders are advised to establish a long position, placing stops below 51.60.
If Crude were to post a weekly close above 55.90, aggressive traders are advised to either add to their existing long position or establish a long position, placing all stops below 53.40.
Also, if Crude were to post a weekly close above 55.90, all traders are advised to place resting buy stop orders at 59.21.
If Crude were to post an ‘intra-monthly’ buy signal at 59.21, traders are advised to either add to their existing long position or establish a long position, placing all stops below  55.90.
If Crude were to post a monthly close above 59.32, traders are advised to either add to their existing long position or establish a long position, placing all stops below 58.60.
Our first objective will be 60.25.
DAILY CHART:
http://bohl.minot.com/d_Chart.cgi?CL5M
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WEEKLY CHART:
http://bohl.minot.com/w_Chart.cgi?CL
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JULY SOYBEAN OIL (BO5N)
July Soybean oil has been in a five week price consolidation between 22.24 lows and 23.39 highs.
July Bean oil has two unfilled price gaps above the current market price. The first is between 24.60 and 24.65. The second is between 25.20 and 25.55.
July Bean oil has one unfilled price gap below the current market price between 20.43 and 20.70.
July Bean oil has a weekly recommendation for next week: buy when trades 23.36 - sell when trades 22.37.
On May 12th the weekly USDA grain export figures will be released.
On May 12th the all-important monthly USDA crop production report is released.
Last month's high was 23.39.
Last month's low was 22.24.
WHAT SHOULD TRADERS DO NEXT WEEK?
If Bean oil posts a weekly buy signal at 23.36, traders are advised to establish a long position, placing a resting stop and reverse at 22.37.
Conservative traders are advised to purchase a Dec 2400 call, risking 80% of purchase price. 
If Bean oil were to post a close above 24.16, traders are advised to either add to their existing long position or establish a long position, placing all stops below 23.36.
Our first objective will be to fill the first of two previously mentioned price gaps between 24.60 and 24.65.
If Bean oil were to post a weekly close above 24.88, traders are advised to either add to their existing long position or establish a long position, placing all stops below 24.16.
Our second objective will be to fill the gap between 25.20 and 25.55.
If Bean oil were to post a monthly close above 25.55, traders are advised to either add to their existing long position or establish a long position, placing all stops below 24.88.
Our next objective will be 26.03.
Our long-term objective will be 27.52.
On the flipside…
If Bean oil posts a weekly sell signal at 22.37, traders are advised to establish a short position, placing a resting stop and reverse order at 23.36.
If Bean oil were to post a weekly close below 22.24, traders are advised to either add to their existing short position or establish a short position, placing all stops above 22.63.
If Bean oil were to post a close below 21.93, traders are advised to either add to their existing short position or establish a short position, placing all stops above 22.37.
If Bean oil were to post a close below 21.53, traders are advised to either add to their existing short position or establish a short position, placing all stops above 21.93.
Our first objective will be to fill the price gap between 20.43 and 20.70.
Our long-term objective will be 19.73
DAILY CHART:
http://bohl.minot.com/d_Chart.cgi?BO5N
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WEEKLY CHART:
http://bohl.minot.com/w_Chart.cgi?BON

CHART WATCH by Scott R. Joss (Non member C.T.A)*

Readers and clients call during the week and ask: What are you watching?

Watching can mean that the markets are developing a 'recommendation' or a chart pattern that has not yet fully developed - or may never develop.

During the course of the week or month it is not uncommon to find an `intra-day, intra-week or intra-month' recommendation that was previously not revealed when this newsletter was written.

Products that currently fit into this 'watch' category are listed below and should be 'watched.'

 There is no 'Chart Watch' this week.

CURRENT 'MONTHLY' RECOMMENDATIONS
FOR MAY:

- SILVER (SI5N)
- ORANGE JUICE (OJ5N)
- LIVE CATTLE (LC5M)
- BRITISH POUND (BP5M)

FUTURE WATCH

Future watch will list developing 'monthly' recommendations to watch in May for June. By listing these products, traders can `feed-forward' with anticipation and focus - centering on products that will provide direction and hopefully, opportunity.
Traders should begin studying the 'daily', 'weekly' and 'monthly' charts for the products listed below. Don't forget between now and the end of the month, some or all of these products may be de-listed.
'Monthly' recommendations will be revealed on the close of business May 31st and sent via email for June.
 
- Potential monthly recommendation for June will be posted in future newsletters.

NOTE:

If you do not completely understand this information, you are advised to take NO action until speaking with your Account Executive.

ClearTrade, Inc. may be reached at 800-493-4444

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* Recommendations and Newsletter prepared by Scott Joss, Non- Member C.T.A.

Scott Joss is a 'non member' CTA and is providing recommendations to ClearTrade, Inc. clients. Scott Joss 'is a principal' of ClearTrade, Inc. and 'is a registered IB member' with the NFA.

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ClearTrade, Inc.
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Suite 2104
Chicago, IL 60640

(800) 493-4444
(773) 561-9777 Voice
(773) 561-9775 Fax

Mailto:research@cleartrade.com 
http://www.cleartrade.com/ 


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DISCLAIMER:

* COMING EVENTS AND DATA RELEASES:

Calendar provided by Briefing.com, Inc. Data is provided for informational purposes only, and is not intended for trading purposes. Neither ClearTrade, Inc. nor any of its data or content providers (such as Reuters, CSI, and Briefing.com) shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Market recommendations are strictly the opinion of the writer and are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures trading involve substantial risk. In no event should the content of a market letter be construed as a promise that you will profit or that losses can or will be limited in any manner whatsoever.

Unless otherwise indicated, the links presented in this newsletter are in no way affiliated with ClearTrade, Inc. Likewise, sites linked through ClearTrade's newsletter are not necessarily connected with ClearTrade, nor do any such links imply an endorsement by either party.

ClearTrade, Inc. does not necessarily promote or endorse the services or publications described herein. Unless otherwise indicated, ClearTrade Inc. has had no role in the production or review of these products or services and makes no warranty, either expressed or implied, as to their contents, accuracy or performance.

Past results are no indication of future performance. Information provided in this newsletter is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Scott Joss is a 'non member' CTA and is providing recommendations to ClearTrade, Inc. clients. Scott Joss 'is a principal' of ClearTrade, Inc. and 'is a registered IB member' with the NFA.

NOTE: Past results are no indication of future performance. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

REPRODUCTION OR REBROADCAST OF ANY PORTION OF THIS INFORMATION IS STRICTLY PROHIBITED WITHOUT THE WRITTEN PERMISSION OF CLEARTRADE, INC.

The contents of this newsletter are copyright 1997-2005, Scott R. Joss/ClearTrade, Inc. *TM. All Rights Reserved.

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