What’s Up, What’s Down: Sharp Lows for Crude

Comments for Thursday, October 16, 2008

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

ENERGIES:

Sharply lower for crude and heating oil along with the rbob while lower for natural gas. New recent lows and closes for all of the energies mentioned above as the world economic crisis continues to have a profound affect.

GRAINS:

Lower to sharply lower closes for Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal, bean oil, oats, corn and rough rice. The entire wheat complex continues to be in a major downtrend. KC and Chicago wheat broke down through bear flags to make new recent lows and closes.

Corn settled sharply lower also down through a bear flag making new recent lows and closes as it busted through its support around the 400 area basis the December contract. Oats closed lower continuing to look weak along with the rest of the grains and having little support below. Rice settled sharply lower for the 6th consecutive trading session making its lowest low and close since last February again. Finally, new recent lows and closes for the beans, meal and oil as their downtrends continue.

MEATS:

Sharply lower for live and feeder cattle along with lean hogs while lower for pork bellies. Live and feeder cattle along with lean hogs made new contract lows and closes which pretty much tells the story how bearish the meat complex has been for some time. Bellies also settled lower again with resistance between 9000-9250 area and little support below basis the February contract.

METALS:

Higher for copper, silver and platinum and but lower for gold. Copper settled higher again but still is in a strong downtrend overall. Also copper closed near its session’s lows well off its highs telling me it should be down on Wednesday. Gold settled lower again and is still close to a major sell signal for me. Look for gold to head towards the 800 area basis the December contract. Silver continues to look lower overall in spite of today’s higher close. Platinum continues to look very weak even after settling sharply higher today.

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.