What's Up, What's Down: Meats Up, Metals Down

ENERGIES:

EIA Gas Storage released today: One tick higher close for the natural gas while sharply lower for crude and heating oils along with the rbob. I now have a sell signal for the heating oil while crude and the rbob are forming possible tops at this time. Natural gas, however, still looks very bullish.

CURRENCIES:

Higher closes for the Japanese, British Pound, Canadian Dollar, Euro Fx, Swiss Franc and Aussie Dollar while lower for the dollar index. The euro continued lower still forming a possible top while the francs made a recent low before rallying to close higher. However the franc is still bearish overall with little support down to the 9200 area basis the June contract. The yen also settled higher still holding the 9600 area basis the June contract and looking bearish overall. The pound rallied sharply off its lows to close very strong. It continues in a sideways pattern looking like it's trying to bottom out.

The Aussie Dollar closed higher acting like it will test its highs and the best looking, technically, of all the currencies to work higher. This market still is bullish overall but is foming a possible top. The Canadian dollar now looks like it also is trying for form a bottom. It has strong resistance over 100 and has been in a sideways market overall since the end of January. The dollar index closed lower but is still forming a possible bottom.

MEATS:

Higher closes across the board. New recent highs and closes for cattle, feeders and hogs. June cattle made a new recent high again. Cattle should continue higher along with feeders that have been forming huge possible bottom. However, 107.50 is a key area to hold basis the August contract or else feeders could retrace down to the 106.25 area. Hogs rebounded enough from Tuesday's sharply lower close to now form a bear pennant. Hogs do have strong support from 72.50 down to the 70.00 area (basis the June contract). Bellies are in what looks like a down channel while trying to form a bottom overall.

METALS:

Lower closes across the board this time. Copper is still bullish overall while continuing in a consolidating mode over the last month. Silver broke out of bear flag and gold a bear pennant to the downside which is usually indicative of these markets moving lower. Platinum also settled low

RATES:

Higher closes across the board again even after the expected interest rate cut of 1/4% by the fed. there are no changes technically at this time. All of the financials continue to look lower overall but the bonds and eurodollars are trying to form bottoms at this time.

INDICES: Jobless Claims, Personal Income, Construction Spending, ISM Manufacturing Index are all released today: A higher close for the Nikkei while lower for the Nasdaq cash and Dow futures along with the S&P's and Nikkei. All of the indices though continue to look higher overall. The Island Reversal for the Nikkei is still in place.

GRAINS

Export Inspections released today: .Sharply higher for soybeans and bean meal while higher for bean oil, corn, oats and Minneapolis wheat. New recent lows for all wheat while also recent low closes for Kansas City and Chicago wheat. Corn negated Tuesday's losses to close strong on its way to test all time highs.

Congress is now talking about lessoning the increase of ethanol production through 2020 probably due to the outrage from many countries that are in a food crisis at this time. Minneapolis, Kansas City and Chicago wheat are still in support areas at this time. Also corn plantings are still the furthest behind in 21 years.

Oats also negated Tuesday's loss but still didn't close anywhere near Tuesday's high. Oats still need to close over 400 to turn this market higher or close below 375 basis the July contract to turn it lower. Rough looking like it's in a free fall settled sharply lower down 115 cents because of expanded limits. There still is not much support underneath this market. On the other hand the bean complex had very strong close but not enough to turn beans, meal and oil higher overall.

SOFTS

LUMBER: Lumber settled sharply lower unable to penetrate its resistance. Still lumber could be forming a possible bottom after the action over the last week. Of course this market is still bearish long term.

ORANGE JUICE: Orange juice had a strong close taking out a double top and finally giving me a buy signal.

COCOA: Cocoa closed up one tick and is in a small bull pennant acting like it will test its highs.

COTTON: Cotton had its lowest low and close since early February basis the July contract again but is still in a decent support area. Cotton is forming a possible large top and I'm not very close to a sell signal.

COFFEE: Coffee closed higher again. The July contract needs to close over 14000 again and stay above 13000. There is strong resistance between 13500 and 14000. This market has been basically consolidating since the middle of March.

SUGAR: Sugar had its lowest close since the 1st week in January again and also settling below1200 again. Sugar is also in a bear pennant looking lower with very little support underneath this market.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com.