Comments for Thursday, January 21, 2010
Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action
CURRENCIES:
Sharply closes yesterday higher for the U.S. dollar index while lower to sharply lower for the Japanese yen, British pound, Euro Fx, Canadian dollar, Aussie dollar and Swiss franc. The euro and franc settled sharply lower giving me a SELL SIGNAL in the euro as it now resumes its long-term down-tend while the franc is in a support area ending my buy signal but not, at least yet, giving me a sell. The yen closed down still in a down-trend since late November but not giving me a new sell signal as of this time. The Canadian dollar really got slammed taking out the lows of the last eleven trading days putting it at the upper end of a strong support area. My buy signal is still okay as of this moment. The pound settled lower but still should work higher while in a short-term uptrend and intermediate down-trend. The Aussie dollar also settled sharply lower needing to hold the 9000 area which is the bottom end of a good support area. The dollar index closed sharply higher now at the upper end if a resistance area. A key price to watch is 7877. I am holding a Sell Signal on the Euro. Please feel free to contact me for details.
FINANCIALS:
Higher for the Eurodollars while lower for the notes and bonds. The Eurodollar continues to be in a long-term uptrend making a new CONTRACT HIGH AND CLOSE while the notes and bonds made a new recent highs and closes.
ENERGIES:
Lower closes Wednesday for natural gas, crude and heating oil along with the rbob. The crude and heat have given me SELL SIGNALS while the rbob is close but still in a good support area. All three have been selling off since its reversal type action on the 11th of January. Gas is still in a BEAR TRIANGLE that keeps getting larger and should work lower to the 540 area basis the March contract. BUY SIGNAL WITH THE RBOB.
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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.