The Case For Higher Prices
Stock indexes turned around late in the session on the eve of the FOMC
meeting. After fighting back from losses that had the March Dow
futures
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points higher, closing at 9867. The March S&P futures
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fought a choppy market, trading in a range between 1126.100 to 1138.800 before
it finally ended in positive territory at 1135.50, up 2.20. The NASDAQ 100
futures
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losses.
With below-normal
temperatures expected later this week in the Midwest, the hope is that March
Heating Oil will post a stronger rally than the past couple of sessions. March
Heating Oil reluctantly moved higher, then closed lower. This was due to the
outlook for supplies to remain sufficient for the remainder of the winter. One
possibility of helping prices move higher is if the refinery cutbacks could
tighten supplies eventually. Look for March Heating Oil to struggle below its
5500 resistance. The support that was around 5330 was broken in today’s session,
and March heating oil
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oil
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gasoline
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Heavy rainfall
rolled through southern Brazil, where corn and soybeans are grown. For the past
several weeks there has been growing concern about these two crops. Last
Thursday, analysts in Brazil estimated that 15.3% of the 2001-2002 soy crop
(Oct-Sept) and 20.3% of the corn crop would be lost due to the dry weather.
March soybeans
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to close higher, up .25 to 431, just above its 62% retracement of January’s
rally. March corn
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low of 208.75. The March corn contract has psychological support at 2.00. March soybean
meal
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to close at 153.3, up 2.1.
March coffee continues its daily losses. For the past week, March coffee has
been drifting to lower lows. Today it landed on strong support. If the March
contract fails to hold 45.50, look for a possible test at around 44.75. March coffee
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March random length lumber
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above its overhead resistance at 293.755. It then pulled back down to close just
above its support at 284.70. Remember last week lumber had formed a cup-and-handle
pattern and broke out of its handle and above its 50% retracement line.