What’s Up, What’s Down: Crude Oil, Feeder and Live Cattle All Sharply Up

Looking back on price action from Friday, June 22.


Sharply higher closes for natural gas along with crude and heating oil and the RBOB. All of the energies continue to look higher but in very choppy action which can be indicative of a top or correction on the horizon. Natural gas, however, did make a KEY REVERSAL on Thursday, but as I’ve said in the past this type of reversal formation is not always reliable. Still, it can’t be ignored. Now natural gas is in a small bull pennant.


Higher closes for the British Pound, Aussie Dollar, Euro Fx, Swiss Franc and Japanese Yen while lower for the Canadian Dollar and dollar index. The euro and franc have continued in a sideways pattern since May. Generally the longer the sideways pattern the greater the breakout when it occurs. The yen has been working lower since its highs back on March 17th showing little sign of turning around. The Canadian Dollar settled lower this time needing to close over 9900 but still forming a possible bottom. The Aussie Dollar also settled higher for the 6th trading session in a row still in a good resistance but acting like it will test its highs. The pound closed higher again at the upper end of a small resistance areas but very close to a buy signal. The dollar closed lower slowly settling into a sideways pattern.


Higher settlements for the eurodollars, bonds and notes this time. All of the financials continue to look lower overall with continuing choppy action


Sharply higher closes for live and feeder cattle along with lean hogs and pork bellies. A new contract high and close for cattle once again while feeders had their best close in two weeks, helped by lower corn prices. Feeders closed higher for the 7th trading session in a row as its retracement rally continues, fueled today by lower corn prices. Now the feeders act like they will test their highs especially after closing over 11250 basis the August contract. Hogs also closed strong now in a good resistance area needing to close over 7875 basis the July contract. Bellies also settled higher but continue to struggle looking lower and needing to close over 7500 basis the July contract to show signs of turning around.


Higher copper and platinum while lower for gold and silver. Copper continues rallying is well on its way to my next price objective of 390 where there is heavy resistance. Gold settled lower this time but is in a bull pennant needing to take out its previous high of 912.5. However, gold is also forming a potential bottom. Silver is still basically in sideways action for the last couple of months with good support at the 1700 area basis the July contract but now in a bull pennant… platinum also settled higher and has been basically in sideways action also since the early part of March with a slight bias higher.


Reports Today: Export Inspections, Crop Progress. Higher closes for Minneapolis wheat, oats and rough rice while lower for Kansas City and Chicago wheat while lower for soybeans, soymeal, bean oil and corn. Minneapolis, KC and Chicago wheat continue to look higher. Corn, while still bullish, is showing retracement signs and needs to hold 717 3/4 basis the July contract.

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 or call toll-free (888) 281-4158.