Lots of strong economic news from China overnight is raising optimism about global economic growth, which is weighing on the Dollar in turn. The weak dollar is stoking rallies in a number of commodities. Gold was strong overnight on Far East demand; clearing the $1150 area basic GCG was especially bullish. There are no reports today, but we have a big report out from the USDA tomorrow morning at 7:30 (corn and bean crop size, winter wheat plantings). We’re also getting into earnings season for equities, and there’s a lot of Treasury paper to be taken down this week.
March S&P: Still a strong market; there’s support from overnight at 1144. There’s trend line resistance around 1148.
March NASDAQ: It’s breaking over resistance at 1892; 1900 and 1904.50 are resistance.
March T Bonds: Treat as breakout mode; watch 114-26 down and 115-21 up.
March Dollar Index: Downside breakout from a bear flag type formation; the next downside objective is 76.66.
March Yen: Sell day; can rally. It cleared first resistance at 1.0822; there’s trend line resistance at 1.0849.
March Euro: Upside breakout of a triangle, it also cleared resistance at last week’s high of 1.4483. It’s a Taylor Sell day, so there’s room to rally.
March British Pound: Taylor Sell day; cleared Fibonacci resistance at 1.6063. Last week’s high at 1.6235 is the next rally objective.
March Canadian Dollar: Sell day, the October 15 high at 9792 is the next rally objective.
March Aussie Dollar: Sell day, cleared resistance at 9227. The Nov. 16 high at 9288 is next.
Feb Gold: It’s a Taylor sell day; clearing major Fib resistance at 1151.40 is responsible to today’s strength. 1170 is the next rally target.
March Silver: This is the fifth day with bullish intraday action (intraday low to high). It might be overbought, but I wouldn’t fight it yet.
March Copper: Sell day rally; last Thursday’s high at 354.40 is the next rally objective.
March Cocoa: Sell day rally, last week’s high at 3333 is the next objective / resistance.
March Sugar: Should be a Buy day, but the action isn’t showing it yet. Friday’s low at 2731 is the Buy day reference price; 2703 is Fib retracement support.
March Coffee: Today is an “exit breakout buys” day that’s shaping up as a Sell Short day. First support is 142.65.
March Cotton: Buy day; resistance is at the swing lows of 73.04 and 73.35.
Feb Crude Oil: An ID/NR4 day Thursday and doji on Friday keep the breakout setup in play. The 83.50 area is the upside breakout point.
Feb. Natural Gas: Today should be a Buy day, but it’s not acting like it. The Dec. 31 low at 5.505 is key support.
March Soybeans: Tomorrow’s report keeps me from committing too much here. The 1033 area is resistance (broken Fib support); 1023 is support.
March Bean Oil: Buy day; it regained Fib support at 39.99. Rally objectives are 40.45 and 40.71.
March Wheat: Sell day; there’s trend line resistance at 575-2.
March Corn: Sell day; 425 is an important pivot point for CH.
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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