Issue 33, May 13, 2007

Prepared by Drew Klein, President of Greenrush Capital Management, LLC (IB & CTA).

Last Weeks Ideas

Idea:	Buy June Japanese Yen, Sell June Euro Currency on a break above -0.5206.
Results:	5/8 entry possible at -0.5205. Final target of -0.5109 hit on 5/10, a GAIN OF 96 pts ($1200 / spread) Max Drawdown Price - -0.5218, down 13 pts from entry ($162.5 / spread) Max Profit Price – -0.5106, up 99 pts from entry ($1237.50 / spread)

NOTES: This week is data-heavy in the financial arena, specifically on the inflation front, with PCE Inflation and CPI on Monday and Tuesday, respectively. Also, Chicago PMI on Monday and Philly Fed on Thursday are other reports that could be market movers. We remain with our bias of short metals, short energies, short treasuries, and long US dollar.

See details in May 6 2007 Greenrush Capital Report.

This Weeks Ideas

1. Breakout: July Coffee
2. Breakout: July Soybeans
   
3. Option Strategy: September/December Cocoa
   
   

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JULY COFFEE

TRADE TO CONSIDER

Futures Trade: Buy KCN7, on a stop, at 107.25.

Why: Coffee is now locked in a sideways channel following the decimation of numerous speculators who thought the market couldn't fall further (us included). Coffee has been known to price in a risk-premium heading into Southern Hemisphere freeze season, and from the looks of a daily chart, we have yet to see that. On Friday, London Robustas were strong and moved to contract highs, while in New York, June Arabica options expired. Also of note, Brazil's coffee lobby asked the government to set a price floor of 300 BRL per 60-kg bag. That's the rough equivalent of $137.00 basis the July futures. The deal is not expected to go through, as it would require huge government purchases of coffee, though stranger things have happened.

Margin (subject to change): Call your broker for margin details.

Desired Risk: If we get long at 107.25, place your stop ON A CLOSING BASIS, at 106.20, risking ($393.75 / contract). Use a time stop of May 18th.

Target: 1st target = 109.00 2nd target = 110.10 3rd target = 111.90 4th target = 114.80 ($2,831.25 / contract)

DISCLAIMER · THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PAST PEFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  TRADING SPREADS IS COMPLEX AND HAS A HIGH DEGREE OF RISK. NONE OF THE TRADES DISCUSSED TAKE INTO ACCOUNT FEES, COMMISSIONS, OR SLIPPAGE, ALL OF WHICH CAN NEGATIVELY IMPACT YOUR TRADING RESULTS. ALL TRADE CONSIDERATIONS LISTED BELOW ARE MERELY IDEAS THAT ARE SUBJECT TO CHANGE BASED ON MARKET FACTORS.  CONSIDERATIONS MAY HAVE NOT YET BEEN AND MAY NEVER BE EXECUTED BY GREENRUSH CAPITAL MANAGEMENT, LLC.

JULY E-CBOT SOYBEANS (ZSN7)

TRADE TO CONSIDER

Futures Trade: Buy July E-CBOT Soybeans (ZSN7) at 761 OB.

Why: Technical breakout following the USDA's Supply and Demand report on Friday. The breakout occurred at the 760 level, and we anticipate that it could be short, swift and violent. Better weather for corn planting should mean that farmers won't shift crop into beans, while the report indicated a sharp drop in 07-08 soybean stocks. Grain markets may be pricing in perfection, and this could create some very interesting summer markets. Talk of $10 new crop beans is far-fetched in our opinion, but the irrationality of growing season markets should not be underestimated.

Margin (subject to change): Call your broker for margin details.

Desired Risk: Place a stop at 739'6, risking 21.25 cents ($1062.50 / contract)

Target: 1st target = 779'2 2nd target = 790'6 3rd target = 809'6 ($2,437.50 / contract)

DISCLAIMER · THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PAST PEFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  TRADING SPREADS IS COMPLEX AND HAS A HIGH DEGREE OF RISK. NONE OF THE TRADES DISCUSSED TAKE INTO ACCOUNT FEES, COMMISSIONS, OR SLIPPAGE, ALL OF WHICH CAN NEGATIVELY IMPACT YOUR TRADING RESULTS. ALL TRADE CONSIDERATIONS LISTED BELOW ARE MERELY IDEAS THAT ARE SUBJECT TO CHANGE BASED ON MARKET FACTORS.  CONSIDERATIONS MAY HAVE NOT YET BEEN AND MAY NEVER BE EXECUTED BY GREENRUSH CAPITAL MANAGEMENT, LLC.

SEPTEMBER / DECEMBER COCOA (CCU7 / CCZ7)

TRADE TO CONSIDER

Options trade: Sell a CCU7 2150 call & buy a CCU7 1850 put for 5 pts debit ($50) or better.

Why: September cocoa appears like it is gearing up to fill a gap left in late April, at the $1980 ton level. If the market moves there early next week, you should be able to place the above trade at a small credit to your account. Technically, we are targeting a move down to the low 1700 / high 1600 level by mid-June. With option IV relatively high in cocoa, this looks like a reasonable strategy, specifically since we think cocoa is prone to false breakouts. If the market breaks as we think it will, look to buy December call options when the September contract trades in the 1680-1700 range.

Margin (subject to change): Call your broker for margin details.

Desired Risk: Risk an adverse move of 60 pts ($600) per option spread.

Target: Futures target is 1700.

DISCLAIMER · THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PAST PEFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.  TRADING SPREADS IS COMPLEX AND HAS A HIGH DEGREE OF RISK. NONE OF THE TRADES DISCUSSED TAKE INTO ACCOUNT FEES, COMMISSIONS, OR SLIPPAGE, ALL OF WHICH CAN NEGATIVELY IMPACT YOUR TRADING RESULTS. ALL TRADE CONSIDERATIONS LISTED BELOW ARE MERELY IDEAS THAT ARE SUBJECT TO CHANGE BASED ON MARKET FACTORS.  CONSIDERATIONS MAY HAVE NOT YET BEEN AND MAY NEVER BE EXECUTED BY GREENRUSH CAPITAL MANAGEMENT, LLC.

Risk Disclosure and Disclaimer:

The risk of loss in trading commodity futures and options can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose the full balance of your account. It is also possible to lose more than your initial deposit when trading futures and/or granting/writing options. As a result, selling/writing "naked" options exposes the seller/writer to the possibility of margin calls and virtually unlimited risk. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT/LOSSES SIMILAR TO THOSE SHOWN.

SEASONAL TENDENCIES ARE A COMPOSITE OF SOME OF THE MOST CONSISTENT COMMODITY FUTURES SEASONALS THAT HAVE OCCURRED IN THE PAST.  THERE ARE USUALLY UNDERLYING, FUNDAMENTAL CIRCUMSTANCES THAT OCCUR ANNUALLY THAT TEND TO CAUSE THE FUTURES MARKETS TO REACT IN SIMILAR DIRECTIONAL MANNER DURING A CERTAIN CALENDAR YEAR.  EVEN IF A SEASONAL TENDENCY OCCURS IN THE FUTURE, IT MAY NOT RESULT IN A PROFITABLE TRANSACTION AS FEES AND THE TIMING OF THE ENTRY AND LIQUIDATION MAY IMPACT ON THE RESULTS.  NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT HAS IN THE PAST, OR WILL IN THE FUTURE, ACHIEVE PROFITS USING THESE RECOMMENDATIONS.  NO REPRESENTATION IS BEING MADE THAT PRICE PATTERNS WILL RECUR IN THE FUTURE. 

This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this transmission. The past performance of any trading system or methodology is not necessarily indicative of future results.

Opening an account with us has never been easier · it takes less than 10 minutes!  Just go to www.greenrush.com and click on APPLY ONLINE.  After completing the online application, you can fund your account anyway you like.  Call us Toll Free at 1-888-548-7874 for assistance.