Stocks are lower overnight. Overnight China’s chief banking regulator Liu Mingkang said that some Chinese banks had been asked to curb lending, raising fears of an equity correction. Talk from Shanghai’s government would allow overseas investment was smacked down by the government. Such investment would allow an outlet for the strong Yuan. In Europe, IMF Managing Director Strauss-Kahn said that Greece’s budget problems were a “serious concern”. In US news, PPI was a non event. Housing starts were weak for single family, strong for multi family. The USD has been helped by China (fears they will have to slam on the brakes to halt inflation) and Greece (threat to EU stability). In addition, the GOP victory in Massachusetts may be raising hopes for fiscal restraint in the US. The strength in the USD is pressuring a broad swath of commodities. The API crude inventory report is out after the close, EIA is tomorrow, pushed back because of MLK Day.
March SP: With the size of yesterday’s rally I view today as a Sell short day. 1136.63 is the first downside objective; 1147 to 1148 is resistance.
March NASDAQ: First support is 1875.
March T Bonds: Buy day rally; yesterday’s high at 117-27 is resistance. There’s near term trend line support at 117-08.
March Yen: did traders forget to trade the Yen? I’m still looking for a breakout move; watching 1.1025 and 1.0950 for breakout points.
March Euro: Downside breakout under the last major low at 1.4215.
March British Pound: Sell short day; couldn’t clear Fib resistance at 1.6338. The 1.6215 area is first support.
March Canadian Dollar: The breakout came a day late – yesterday’s doji kept it alive. The 9600 area was key support, 9542 is the next downside objective.
Feb Gold: Breakout setup; clearing the first downside breakout point at 1126.50 (Monday’s low). The 1119 area is the downside target.
March Silver: It’s a Sell day that’s acting more like a Sell Short day. 18.50 is key support.
March Copper: Support is 338.75 then 337.20.
March Sugar: Into new highs today; the old high at 28.95 is a pivot point today.
March Coffee: Breakout day; well under support in the 140 area. That last low at 135.80 is the next downside target.
March Crude Oil: Broke back under Fib support at 78.45; the $77 area is next support.
Feb. Live Cattle: Sell Short day; first support is 87.35.
Feb. Lean Hogs: Yesterday’s doji gives it the potential for a directional move today. So far it’s under first support at 69.75; 69.00 and 68.50 are next.
March Soybeans: Holding under the recent 969 low; the 11/9 low at 955-6 is next support.
March Soymeal: Breakout setup; I see 288.40 as the downside breakout point, with the recent low at 284.10 as the target.
March Corn: Kind of a breakout setup; today it’s under the breakout level at the 368-0 low. The long it holds under 370 the more I like the short side.
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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