This Friday morning the US dollar index is down slightly, at 76.50, but the rest of the screen looks positive.
You have to remember these are holiday markets, and the trade will be thin. The Stock indexes are higher. SPZ had a high at 1114 and a low at 11095. Currently up 2.5 handles, and looking like it wants to challenge the 1116 level. DJZ is above the 10,500 level, with a low at 10498 and a high at 10,510. Not much of a trading range. In fact I did a double take when I checked. The FOMC meeting began today, and we have some economic numbers coming out this week, so all in all there’s a lot of risk with not much potential reward, as these indexes sit a top their 9-month ranges.
The grains rallied with the weaker dollar so far today. CH is at 406 with a high at 408. The 413 area beckons as resistance. In the Jan Beans, SF has a high at 1046 and a low at 1032, currently at its high at 1046. I spoke about the 1043 target last week, and now I think we could pop up to the upper range of our sideways trend, up to the 460 level.
WZ is up 5 cents at 542 1/2 with a high at 544 and a low at 534 1/4. It looks to be hedging itself along with corn and beans.
All in all the grains are holding up surprisingly bid in these markets. I think it hints at underlying strength, or perhaps the anticipation of renewed fund buying on tap at the first of the year as the Index funds come in and re-balance.
The metals are slightly higher, as is crude, although crude posted a new 2-month low at 6859 today . Gold is taking a breather after posting 1-month lows just last Friday. Ditto for the Silver, which is also recovering after 1-month lows, and testing below the 17 cent level last Friday as well
