What’s Up, What’s Down: Spotlight on Currencies, Energies

Comments for December 2, 2010

Looking ahead to Thursday by reflecting on Wednesday’s trading action

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors

Sell signals on the Franc & Yen. Crude headed toward its previous high?

CURRENCIES: 12/02/10Higher closes yesterday for the Japanese Yen, British Pound and dollar index while lower for Euro Fx, Swiss Franc, Canadian Dollar and Aussie Dollar again.The euro settled lower for the 6th consecutive trading session making its lowest low and close since the middle of September and the franc since September 20th. The yen, still in a support area, settled higher while the Canadian Dollar settled at its worst low and close since late October.The pound made its worst low since September 15th before ending up slightly higher in reversal type action while the Aussie Dollar had its lowest low and close since October 5th.The dollar, on the other hand, had its best high and close since September 21st continuing to move higher with my objective at the 8300-8400 area basis the December contract. BUY SIGNALS CANADIAN DOLLAR AND DOLLAR INDEX. SELL SIGNALS FOR THE EURO FX, BRITISH POUND, SWISS FRANC AND JAPANESE YEN. CALL FOR DETAILS!

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ENERGIES: 12/02/10Higher to sharply higher closes Wednesday for crude and heating oil along with the rbob and natural gas again. The crude blew through its short lived double top with its best close in over two weeks along with heating oil. Both are now heading towards their previous highs on November 11th. The rbob, on the other hand exploded making its best high and close(Jan. contract) since May 3rd giving me a BUY SIGNAL. Gas also settled higher still in a strong support area which is the area to take a long position using good money management principles if you are bullish. There is good resistance over 450(Jan. contract) which is also a key area, in my opinion, if gas is going to move higher in spite of huge supplies.  BUY SIGNALS FOR THE RBOB AND NATURAL GAS. CALL FOR DETAILS!

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Special Note for Cotton Traders: The daily price limit for Thursday, December 2 will expand to 5 cents.

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. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.