What’s Up, What’s Down: Dollar Down, Crude-Oil Up

  • September 22, 2009
  • Rick Alexander

Comments for Tuesday, September 22, 2009

Looking Ahead to Today by Reflecting Back at Monday’s Price Action

CURRENCIES:

Higher close yesterday for the U.S. Dollar Index while, conversely, lower for the Euro, Swiss franc, Canadian and Aussie dollar along with the pound and Japanese yen again. All of the currencies still are in uptrends while the dollar continues to look lower overall. However, the yen and pound are forming potential topping formations at this time. Also the Canadian dollar and pound continue basically trading sideways since the middle of the year.

Japanese yen Chart

British Pound Chart

FINANCIALS:

Higher close Monday for the eurodollar but lower for bonds and notes again. The financials are still in uptrends but feeling some pressure from the rising stock indices. There is toppy action going on in all of the financials that need to be monitored closely.

ENERGIES:

Lower to sharply lower closes for natural gas, crude and heating oil along with the rbob. The crude and rbob are still giving me sell signals but the heating oil gave me a BUY SIGNAL last Thursday which I don’t trust but it’s a buy signal nevertheless. After today’s action the heating oil is in a support area. Natural gas settled lower but has formed a nice looking BULL PENNANT with a sharp rally off of its session’s lows. I still have a sell signal for the gas while it attempts to form a possible bottom with resistance over 375 basis the October contract.

Free download of “25 Proven Options Strategies” available at: https://www.zaner.com/3.0/ljs1.asp

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

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.