What’s Up, What’s Down: Higher Copper, Lower Gold
Comments for Tuesday, June 30, 2009
Looking Ahead to Tuesday by Reflecting Back on Monday’s Price Action
GRAINS:
Higher for oats, mixed for soymeal while lower for corn, Minneapolis, Kansas City and Chicago wheat along with rough rice, soybeans and soyoil ahead of a couple of pretty important reports. All of the wheat continues to look very weak with Minneapolis, KC and Chicago making new recent lows and closes once again. Corn made a new recent low (April) and close (March) ending up below the all important psychological price of 400 basis the December contract. Rough rice also made a new recent low and close still in a trading range between 12000 and 13000 basis the September contract. Its long term trend has been down since last September however. Oats closed slightly higher but it was its highest high and close in 5 trading sessions. It wouldn’t take much for a good size retracement rally to take place based on its present formation. There really is very little resistance overhead. The beans and oil closed lower again while meal settled mixed this time. SELL SIGNALS FOR SOYBEANS, SOYMEAL, MINNEAPOLIS WHEAT AND OATS.
MEATS:
Sharply higher settlements on Monday for live and feeder cattle while higher for lean hogs and lower for pork bellies. The cattle and feeders exploded to new recent highs and closes as shown below. Both should continue higher overall but the feeders are now in a resistance area. Hogs had a decent close after the hogs & pig report but still are in a major downtrend . Bellies settled lower again acting like they’ll test their contract lows. I am holding Buy Signals for Live and Feeder Cattle; a Sell Signal in Pork Bellies.
METALS:
Lower closes yesterday for gold, silver and platinum while higher for copper just the opposite of Friday’s action. Copper still is in a long term uptrend acting like it will challenge its highs while also has the makings of forming a potential top at this time. Gold and silver settled slightly lower but are still close to ending my sell signals. Platinum also closed lower still looking very toppy at this time.
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.