What’s Up, What’s Down: Higher Dow Futures, Sharply Higher for Crude

Comments for Monday, November 3, 2008

Looking Ahead to Today By Reflecting back at Friday’s price action


Higher to sharply higher for crude and heating oil along with the rbob and natural gas. All of the energies are still in major downtrends with little sign of changing direction. Today’s action didn’t even cause a dent in their downtrends. Opec will continue to try to stem the tide by cutting production but that won’t stop lower energy prices if the world’s economies continue to struggle.


Higher for Minneapolis wheat while lower for oats, soybeans, soymeal, soyoil, Kansas City and Chicago wheat along with corn and rough rice. The entire wheat complex continues to be in a downtrend still forming possible bottoms. Corn settled lower and although in a major downtrend, has been consolidating for the last 4 weeks, possibly forming a bottom but too soon to tell. Rice also closed lower but trying to form a bottom. Oats closed down still looking weak overall. The bean complex closed lower with beans trying to form a bottom and now also the oil. However, the overall trends are still down.


Higher closes for the cash and Dow futures along with the S&P’s and Nasdaq in usually choppy action once again. We’re still looking a major downtrends but the action over the last couple of weeks may be showing signs of at least a possible retracement or bottom. However, no indicator has yet to tell me that it is going to happen, so we’ll just watch and wait to see how it pans out.


Higher for live cattle and feeder cattle while lower for lean hogs and pork bellies again. There are no changes for the beef complex with cattle and feeders still in major downtrends at this time, but still in resistance areas after retracing the last week. On the other hand hogs and bellies continue to look very bearish both at critical areas to hold.


Higher for platinum but lower for gold, copper and silver once again. Copper still needs to hold the 180 level basis the December contract. This market acts like the downtrend will continue. Gold and silver have also been in downtrends and are currently in technical patterns that scream lower. Platinum settled higher again but really is still in a strong downtrend at this time.

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.