Comments for Monday, January 25, 2010
Looking Ahead to Today by Reflecting Back at Friday’s Price Action
Higher for the notes and bonds while lower for the Eurodollars. The Eurodollar continues to be in a long-term uptrend now with a TRIPLE TOP in the March contract which probably doesn’t mean much because of such narrow ranges practically everyday. The bonds and notes made new recent highs and closes again as their short-term trend continues higher.
Higher closes Friday for the dollar index, Japanese yen and Euro Fx while lower for the Swiss Franc, British pound, Canadian dollar and Aussie dollar. The euro closed slightly higher and the franc slightly lower this time but, once again, no changes technically. The euro has resumed its long-term down-tend while the franc is not, at least yet, giving me a sell while continuing to hold its support. The yen made its highest high and close since the middle of December as its short term uptrend continues. The Canadian dollar closed down for the 5th consecutive trading session still in a strong support area where bulls can consider taking a long position. The Canadian dollar’s drop has been practically straight down and needs to hold the 9300-9400 area! The pound settled lower for the third day in a row and now could be forming a larger bottom. However, it’s running out of room! Either way my buy signal is still in place while its trend since the middle of November is down. The Aussie dollar also settled lower for the third day in a row still needing to hold the 9000 area not quite giving me a sell signal. The dollar index settled slightly lower still not quite giving me a buy signal. Overall the dollar has been actually trending higher since the end of November. Either way, today’s action has forced me to remove my sell signal.
Lower Friday for silver, gold, platinum and copper once again. All of the metals continue to be in up-trends but have been forming potential tops and are still near possible sell signals. Copper is still in a uptrend but but made a new recent low before rallying to settle higher in reversal type action. Also copper had a failed bull triangle earlier in the week. Gold settled below the all important 1100 price not yet giving me a sell signal but ending my buy signal. Silver made a new recent low and close now at the bottom of a support area. Platinum had a huge range making its lowest low and close in over two weeks close hurting its up-trend but not giving me a sell signal, at least yet.
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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 email@example.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.