What’s Up, What’s Down: Higher Dow, Lower S&P and Nasdaq
Comments for Thursday, October 2, 2008
Looking Ahead to Today By Reflecting back at Wednesday’s price action
GRAINS:
Higher closes for oats, soybeans, soymeal and bean oil while lower for Minneapolis, Kansas City and Chicago wheat long with rough rice and corn. The entire wheat complex continues to be in a downtrend with Minneapolis and KC wheat making new recent lows and closes while Chicago wheat is in a bear flag.
Corn made a new recent low and close following through from Tuesday’s sharply lower settlement. There really is no good support down to the 425 area. Rice closed down over 50 cents with the daily limit expanded and is now forming a potential top. Oats settled higher but is in a strong downtrend. The bean complex settled higher but beans, meal and oil are still in major downtrends.
INDICES:
Higher for the Dow futures while lower for the cash Dow, S&Ps and Nasdaq as Congress still struggles to reach a financial package. All of the indices continue to be in downtrends.
MEATS:
Mixed for live cattle while lower for feeder cattle, lean hogs and pork bellies. October cattle are in a bear pennant and the December contact made a new recent low but both are very bearish technically. Feeder cattle made a new contract low as the bear trend continues in spite of falling corn prices. Also hogs made a new contract low in the December contract also in a strong downtrend in spite of falling corn prices. Also there are still gaps overhead to be aware of.
Bellies reversed it action of late settling almost down its daily limit still unable to settle over 100 basis the February contract. Bellies settled lower for the 3rd consecutive trading session now in a support area between 9000 and 9250 which was the old resistance area for the February contract.
METALS:
Higher for gold, silver and platinum while lower for copper which had its lowest low and close since March ’07 again. Gold and silver have been consolidating or struggling lately depending on whose side you are on but both are still forming potential huge bottoms. Platinum, on the other hand, continues to look very weak. However, silver is forming large potential bottom and is still poised for a strong possible breakout to the upside.
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.