Over the weekend the G-20 finance ministers met; they agreed that government stimulus programs should continue, and said nothing about weakness in the Dollar or other imbalances. As a result, the green light is still on for carry trades. This is pushing down the Dollar and pushing up risk assets-equities, gold, commodities. Crude oil is higher as Hurricane Ida forced the shut down of some oil and gas operations in the Gulf of Mexico. There are no economic numbers out today.
Dec. S&P: As I wrote this weekend (read here); the breakout setup trumps what should be a sell short day. They cleared the first breakout point around 1070; further points are 1075 (breakout) then 1084.75 (target). Dec. NASDAQ: Following the S&P higher; 1753 is resistance.
Dec. Dow: Testing the Oct. high at 10070.
Dec. T Bonds: Watch out for a directional move after two doji days. The Oct. low at 117-25 is support.
Dec. Dollar Index: Big selloff out of a breakout setup (2 NR days). The Oct. low at 75.085 is support.
Dec. Yen: Sell short day after Friday’s breakout rally. 11078 and 11052 are support.
Dec. Euro FX: Good rally from a breakout setup (2 NR days). Thursday’s high of 14916 was the breakout point; 15016 was the first objective; 15062 is next.
Dec. British Pound: Breakout setup; it cleared resistance at the Sept. high of 16742.
Dec. Canadian Dollar: Good rally on a buy day setup. Resistance is at last week’s high of 9439 then 9483.
Dec. Gold: A strong rally after finally decisively clearing the $1100 area. 1110 should be resistance, but the daily chart doesn’t look overbought.
Dec. Silver: Showing strength after two doji days. Clearing last week’s high of 1763.5 also helped. An October top at 1797 is the next objective.
March Sugar: It has a breakout setup (two bar contraction); the first downside breakout point is 22.28. There’s also some support at 22.15.
Dec. Coffee: It’s a buy day. Support is 13850 then 13915. The first resistance is 14230.
Dec. Cotton: There’s usually a buy day signal after a breakout sale. Resistance today is at 67.87then 68.43.
Dec. Crude Oil: Another buy day after a breakout sale. There’s tough resistance is the 78.80 to 78.90 area.
Jan Soybeans: Had an “Oops” buy last night. 957-3 is a daily Fib retracement support level; 971 is resistance.
Dec. Bean Oil: Rallying on a buy day. There’s support at 36.51; resistance is 37.38.
Dec. Wheat: Another buy day signal; resistance is 508 then 512.
Dec. Corn: A buy day rally; 379 is resistance.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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