What’s Up, What’s Down: Financials and Energy Sectors

Comments for Tuesday, November 3, 2009

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


FOMC MEETING (2 DAYS) BEGINS TODAY:  Unchanged for the eurodollar while lower for the notes and bonds with no changes technically. The eurodollar amazingly settled unchanged equaling its CONTRACT HIGH CLOSE four consecutive trading sessions in a row. The bonds and notes are a little difficult to call, however. I have sell signals for both but they’re also close to buy signals. Also, both could be forming another sell signal on a larger scale. The eurodollar is just in a long term up-trend that is moving at a snails pace higher in the December contract.

Eurodollar Chart

US Treasury Bond Chart


Sharply lower closes Monday for crude and heating oil along with the rbob this time while natural gas made a new recent low close again. All of the energies were hurt by Wednesday’s and Thursday’s action with the crude, heat and rbob having their lowest lows and closes in 2 weeks again. Next week could be very critical as to what direction the crude, heat and rbob will take for a while with their choppy action one of the good indicators for a topping (or bottoming) market. Natural gas made a new recent low close looking very weak overall.

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.

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.