What's Up, What's Down: Higher Nasdaq, Lower Dow and Crude Oil

Comments for Monday, October 13, 2008
Looking Ahead to Today By Reflecting back at Friday's price action

ENERGIES:

Sharply lower for natural, crude and heating oil along with the rbob. All of the energies still continue to be in good downtrends with new recent lows and closes for crude, heat and the rbob while the natural gas lingers near its lows.

GRAINS:

Sharply lower closes for Minneapolis, Kansas City and Chicago wheat, soybeans, soymeal, bean oil, oats, corn and rough rice. The entire wheat complex continues to be in a major downtrend with all making recent lows and closes. Corn settled down the 30 cent limit making a recent low close continuing its downward momentum.

Oats also settled sharply lower one cent from the daily 20 cent limit making a new recent low and close looking very weak overall. Rice also settled sharply lower one cent from its 50 cent daily limit now in a support area. Finally beans, meal and oil closed down their daily limits with the beans and oil making recent lows and closes.

INDICES:

Higher for the Nasdaq while lower for the cash and Dow futures along with the S&P's. New contract lows and closes for the Dow and S&P's while a new contact low for the Nasdaq before settling higher. After opening higher and then selling off the market chopping around finally having a strong rally before profits taking came in to close all but the Nasdaq lower. All of the indices continue to be in downtrends but be careful of sharp retracements as governments around the world continue to take action trying to stem the tide.

MEATS:

Lower to sharply lower for live and feeder cattle, lean hogs and pork bellies. Live and feeder cattle settled down their 300 point daily limits both making new contract lows and closes. Lower closes also for the hogs which are acting like they won't fill some of their overhead gaps as all the meats continue their slides. Bellies gapped lower again but at least closed near their session's highs although still down almost 200 points. Bellies are now in their last support area.

METALS:

Higher for copper and silver and platinum while lower for gold. Copper made a new recent low before settling higher but still in a downtrend overall. Gold settled lower still in a resistance area and trying to break out of a consolidation area to the upside, in an area that it failed to do so 2-3 weeks ago. Silver continues to look lower overall while trying to form a potential bottom formation. Platinum, on the other hand, continues to look very weak making a new contract low and close again. Platinum also settled higher and also continues to look very bearish.

SOFTS:

LUMBER: Lumber settled higher but is in a bear flag still in a strong downtrend.

COCOA: Cocoa settled lower making one cent low and close.

SUGAR: Sugar settled slightly higher still in a strong downtrend.

COTTON: Cotton settled low and now is in a bear pennant looking to continue its downtrend.

COFFEE: Coffee also closed higher, but like the other softs mentioned above, looks very weak and should continue lower.

ORANGE JUICE: OJ settled lower looking very bearish just like the other softs mentioned above.

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. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.