Stocks are lower, although they cut losses after it was reported that Berkshire Hathaway will buy the rest of Burlington Northern Santa Fe, for about a 31% premium over yesterday’s close. Buffet characterized the purchase as a bet on the recovery in America. MasterCard reported good earnings, and said the volume of transactions is picking up-a good sign for the economy? Elsewhere, I saw bad news from the financial sector-UBS reported a loss, and UK banks (Lloyds and RBS) got more bailout money. I thought they might be paying money back by now. The Berkshire news is taking some heat off the markets for the time being. There’s not much news out today. Factory orders are out at 9 AM, and it’s day 1 of the FOMC meeting. With numbers out and the end of the FOMC meeting tomorrow, maybe today will be a consolidation day.
Dec. S&P: Yesterday was an NR4 day; watch yesterday’s low of 1026.00 as a downside breakout point today. Watch 1045 on the upside.
Dec. NASDAQ: Resistance is at 1679; support is 1650.
Dec T Bonds: It has an NR4 breakout setup today. The upside breakout point is yesterday’s high of 120-14; watch 119-15 down. More conservative traders could trade a breakout in the 10 Year or 5 Year T Notes-they both have breakout setups, tend to be less volatile.
Dec. Yen: Momentum is bullish; use the 111 level as a pivot today.
Dec. Euro FX: It had an NR4 and doji breakout setup today; it’s under the breakout point at 14681 (last Thursday’s low).
Dec. Canadian Dollar: There’s an NR4 breakout setup today; I’m using breakout points of 9298 (trend line) and 9212 (yesterday’s low).
Dec. Gold: Overnight it stopped at trend line resistance of 1065.60. It’s a sell short day today; 1050 is key support.
Dec. Silver: It has an ID/NR4 breakout setup, and has formed a little channel. The first downside breakout point is yesterday’s low of 1627.5.
Dec. Copper: There’s an NR4 and doji breakout setup today; watch support around 290.
Dec. Cocoa: It’s a buy day, but it’s testing important Fibonacci support of 3231; I don’t think it’s done testing that.
March Sugar: It’s on a sell short signal; overnight it tested last week’s high of 2369.
Dec. Coffee: It’s on a sell short signal today; support is 139.15 then 138.
Dec. Crude Oil: Yesterday’s rally stopped at Fib retracement resistance of 78.51; support is at the old low of 76.87.
Dec. Live Cattle: An Id/NR4 breakout setup; watch the overnight low of 85.80 as a downside breakout point; 8650 on the upside.
Jan Soybeans: A sell short day; use 995-4 as a pivot today. 1000 is resistance, 984 is support.
Dec Wheat: A sell short day; 507 is first support, then 502.
Dec. Corn: Sell short day; watch Fib resistance at 386-4. Support is 371-4.
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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