What’s Up, What’s Down: Oil Futures High, S&P Low and Dow Drift Lower
Comments for Tuesday, September 23
Looking Ahead to Today By Reflecting back at Monday’s price action
ENERGIES:
Sharply higher for the crude and heating oil along with the rbob while higher for natural gas. Even after today’s action the crude, heat and rbob are still in downtrends overall, but now forming potential bottoms. While the natural gas continues in a consolidation mode at this time, also still in a long term downtrend with the rest of the energies.
GRAINS:
Higher to sharply higher closes again for rough rice, Minneapolis, Kansas City and Chicago wheat along with corn, oats, soybeans, soymeal and bean oil. All of the wheat continues to be in downtrends but forming potential bottoms. Corn also closed very strong but looks lower overall. However, choppy action over the last couple of weeks could be indicative of a turn around happening soon or at least a retracement.
Oats also closed strong showing signs of a rounding bottom but still in a downtrend overall a double bottom at 323 basis the December contract. Rice closed strong (up the 50 cent daily limit) again taking out its last high at 19750 basis the November contract. A close over 200 would be significant. The bean complex had strong closes again still in downtrends overall but now forming potential bottoms in the beans and oil. The meal still looks weak.
INDICIES:
Sharply lower closes for the cash and Dow futures along with the S&P’s and Nasdaq ending for now the indices short term euphoria. All of the indices in downtrends and ending any signs of potential bottoming formations at this time. The Dow futures do have a KEY REVERSAL still in place.
MEATS:
Higher settlements again for live and feeder cattle along with lean hogs and pork bellies. Cattle and feeder cattle continue to look very weak overall. The hogs have been consolidating trying to form potential bottoms especially in the October contract. The bellies gapped and closed over its strong resistance area (9000-9250 basis the February contract) now turning back higher with 9750 its next objective for now.
METALS:
Sharply higher for copper, platinum, gold and silver. Copper has now given me a buy signal along with gold but not yet for silver and platinum.
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.