Chinese stocks (Shanghai) were down 6.7% last night. Bloomberg said China a big drop in new loans for August and that China is cutting imports of raw materials. There’s also a lot of new stock issuance on tap for China. Chinese stock weakness is weighing on commodities-oil, metals, the grains, and the commodity currencies are all sharply lower. The Dollar is a bit higher and the short end of the yield curve is stronger. Today we get the Chicago ISM report at 8:45; it’s supposed to have increased in August.
Sept. S&P: Formed a double top around 1038; there’s support at 1020. Momentum indicates more downside.
Sept. Dow: There’s important support around 9440 to 9430; breaking that could target 9300.
Dec. T Bonds: Treasury futures rolled to Dec. last night. I’m surprised they’re not stronger with the stock market weakness. Watch trendline support at 11814.
Sept. Euro Currency: Momentum is down to buy day levels, but a break below trendline support at 14264 to break them to 14227.
Sept. British Pound: There’s trendline support at 16162 and the recent low was 16152. Taking that out targets 160.
Sept. Canadian Dollar: Broke Fib support at 9073; 8987 was the recent low. It’s in a down trend, but momentum is down to buy signals level.
Dec. Gold: The trend is neutral, momentum is bearish. 948 is a 50% retracement of the rally off the mid-August low.
Dec. Silver: Momentum sell short day; watch support at 1450.
Dec. Copper: Big reversal from Friday’s rally; watch support at 284 then 28240.
Dec. Cocoa: Breakout day; testing the first breakout point at Thursday’s low of 2767.
Oct. Sugar: Bucking the weak commodity trend on continued concerns over tight supplies. Tested and held over the old contract high of 2333.
Dec. Coffee: Testing last week’s low of 120.75; taking that out the July low at 116.40.
Dec. Cotton: Looks weak; a break of last week’s low at 5700 targets 5500.
Oct. Crude Oil: Big selloff on a breakout day setup; my first downside breakout point was 7141. There’s trendline support at 7022.
Nov. Soybeans: No freeze this weekend and slightly warmer weather are adding to the pressure on beans. Broke 988 support; watch 979-4 next.
Dec. Soymeal: 299 is the midpoint of the August trading range; breaking that targets 294 first.
Dec. Bean Oil: Broke und the mid-August low of 3600; watch trendline support at 35.31.
Dec Wheat: Watch the recent low of 485-4; it can’t get out of its own way.
Dec. Corn: Doji Friday; it broke under the midpoint of the recent range at 324-4. Last week’s low at 320-6 is next.
This is the morning update to my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
Copyright 2009
This feed is for personal, non-commercial use only.
The use of this feed on other websites breaches copyright. If this content is not in your news reader, it makes the page you are viewing an infringement of the copyright. (Digital Fingerprint:
f2ea78dd95959aa32f651cec20a16e23)
