What’s Up, What’s Down: Metals and Meats

Comments for Tuesday, March 30, 2010

Looking Ahead to Today by Reflecting Back at Monday’s Price Action


Higher closes Monday for copper, gold and silver but lower for platinum. This time copper rallied to settle sharply higher making its highest close since July ’08 and just missing a new high since then. Silver also settled sharply higher now at the upper end of a critical resistance area. Lately, silver has continually sold off when nearing 1750 basis the May contract and, actually, only once closing over that price. I would sell in this area until it closes over 1750 but staying neutral overall until it does. Gold has been getting pulled up by silver actually looking weak comparatively speaking while trading sideways to lower since December. Platinum also closed sharply higher ending for now it’s possible topping formation. BUY SIGNALS FOR COPPER AND PLATINUM. SELL SIGNAL FOR GOLD. CALL FOR DETAILS!

Copper Chart

Gold Chart


Higher to sharply higher closes yesterday for live and feeder cattle along with lean hogs and pork bellies due to the bullish hog report. Cattle were pulled higher by the hogs but still look toppy in a bull market. However, the bear flag has failed which usually leads to a retracement rally in the near term. Also, 9140 is still a key price in the June contract and support is around the 9000 area. The feeders continue to hold up better, helped by falling corn prices, closing sharply higher and breaking out of a BULL FLAG OR PENNANT. They now should test their contract highs. The June hog contract gapped and settled up the 300 point daily limit still looking toppy but we have to see the follow through during the rest of the week to determine if the bull market will continue. Bellies also closed up the daily 300 point limit turning back higher overall. BUY SIGNALS FOR LIVE AND FEEDER CATTLE. SELL SIGNAL FOR HOGS. CALL FOR DETAILS!

Live Cattle Chart

Read 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.

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