What’s Up, What’s Down: Gold on an Uptrend
Comments for Tuesday, November 10, 2009
Looking Ahead to Today by Reflecting Back at Monday’s Price Action
GRAINS:
Sharply higher to higher closes for Minneapolis, Kansas City and Chicago wheat, rough rice, oats, corn, soybeans, soymeal and soyoil. All of the wheat continue to show bottoming signs especially after yesterday’s action and should only be played from the long side at this time although it has been a struggle to go anywhere. Call for details. DON’T FORGET WHEN TRADING THE GRAINS AT THIS TIME YOU MUST PAY CLOSE ATTENTION TO THE DOLLAR! The reason that I’m mentioning this now is now is because the dollar had been showing signs of bottoming and, if it does, could put a lid on grain rallies in the near future. Corn also settled sharply higher ahead of the crop report partially do to short covering and could be in a BULL TRIANGLE. However, corn has only closed over four dollars only once since the end of June basis the December contract. I don’t really want to take any new positions at this time but I would use four dollars as your focal point when making any decisions with this grain. We’ll continue looking at the dollar’s weakness for guidance but there still should be a record crop being harvested and that can’t be ignored. Rice closed higher still looking very strong and this lower close actually is indicative of a very bullish market with such a small retracement so far. Oats settled lower still in a long-term up-trend and BULL PENNANT but having choppy action over the last month. The bean complex also closed slower but all have an upward bias at this time. However, the beans and meal are at the lower end of their trading ranges over the last month.
METALS:
Higher closes Monday for copper, gold, silver and platinum. Copper continues to act like it will get through its present resistance area and make new recent highs but has struggled over the last few weeks while consolidating. Gold continues leading the way making a new CONTRACT HIGH AND CLOSE. Of course each time gold does that it means new all time highs and/or closes. Silver continues to follow along while in a resistance area at this time and settling near its session’s lows. Platinum also settled higher and near session’s highs at the upper end of its last resistance area.
ENERGIES:
Higher closes yesterday for natural gas, crude and heating oil along with the rbob. All of the energies with the exception of natural gas are still in uptrends overall but acting choppy which happens many times and tops and bottoms of markets. Gas made a new recent low but closed higher this time in reversal type action. We’ll see! I hold technical Buy Signals for Crude & Heating Oil and RBOB; but a Sell Signal on Natural Gas.
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.