A Chinese PMI report overnight showed strength in China’s economy as PMI rose to its highest level in five years. This was slightly blunted by news that China’s government is tightening tax and mortgage rules to quash a real estate bubble. Euro zone PMI showed a slight rise, as expected. Overnight there were dueling comments from Fed officials. Bernanke said that the Fed’s low interest rate policy did not cause the housing bubble, and that Fed policy was appropriately loose according to the Taylor rule (John Taylor the economist, that is). Energy prices are higher on cold weather in China, Korea, the U.S., as well as concerns about the Middle East, notably Yemen. Gold is following higher energy prices and a lower US Dollar. Credit markets are soggy after Pimco’s Paul McCulley said Pimco is cutting their holdings of US and UK debt in the face of high issuance, and that they are cautious on corporate debt. Later this morning we get US construction spending and the ISM manufacturing survey at 9 AM.
March S&P: A “cover breakout sales day” turns into a Buy day; resistance is 1119.25.
March NASDAQ: Back on the highs; the original high at 1881.50 is resistance.
March Dow: Another “cover breakout sales day”. Held Fib support at 10364 Friday; today there’s resistance at 10443.
March T Bonds: Buy day; I view the old low at 114-+26 to be the reference point for a buy today.
March Yen: Buy day; there’s trend line resistance at 1.0839.
March Euro FX: Finally a directional move after all those doji days. There’s trend line resistance at 1.4336.
March British Pound: Showing strength on what’s ostensibly a Sell Short day. The old low at 1.6157 is resistance.
March Canadian Dollar: Good rally on a Sell day (had an ID pattern for a kicker). Last week’s high at 9650 is resistance.
Feb. Gold: Good Sell day rally; cleared resistance at the last swing high of 1114.50.
March Silver: Breakout setup; rallied to resistance in the 17.23 -17.24 area.
March Cocoa: Exit breakout buys / Sell Short day; stopped at resistance at 3306.
March Sugar: Breakout setup (ID and doji) led to a rally today that took out the recent high at 27.49.
March Cotton: Rally out of a breakout setup (NR7 and doji); the double top around 76.54 is the first objective and resistance.
Feb. Crude: Rally out of a breakout setup; a mid Nov. swing high at 81.35 is the next rally objective.
Feb. Natural Gas: A Buy day rally; last week’s high at 6.038 is the major rally objective.
March Soybeans: Still rallying; there’s trend line resistance around 1070.
March Soymeal: Breakout setup (ID /NR7); trend line resistance at 311.60 is the upside breakout point.
March Wheat: Rallying out a breakout setup / channel. Cleared resistance at last week’s high of 554-6; there’s Fib resistance at 559-4.
March Corn: Starting out 2010 with a bang; the Nov. double top around 425 is the next rally objective.
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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