Thin holiday markets pushed the USD through support and turned its selloff into a rout. Investors continue to pour money into risk assets. For today there’s optimism about the economic recovery; the drop in jobless claims helped. The FT had a story that strong Japanese exports are raising hopes for an economic recovery there. There’s also a story (don’t remember where) that the Russian central bank is preparing to invest in the C$. Gold saw strong demand from India overnight. Later this morning we get consumer sentiment at 8:55, new home sales at 9 AM, and crude inventories at 9:30. There’s also a 7 year T Note auction today; results are out at Noon. With the US markets closed tomorrow, will trading be light? There were lots of breakout setups today to give us some excitement.
Dec. S&P: It has a breakout setup today; the double top around 1112 is the first rally objective.
Dec. NASDAQ: Breakout setup; Monday’s high at 1801.75 is the first rally objective. The 1784 area is Fib retracement support.
Dec. T Bonds: We’re getting to a sell short signal; yesterday’s rally over the 121-11 swing high is aiding the bulls. Be alert for a reversal under it.
Dec. Dollar Index: Had a breakout setup today; broke under the old ’09 low of 74.75.
Dec. Yen: A huge rally as it broke above the recent congestion and the Oct. high at 11368.
Dec. Euro: Breakout day rally; cleared the last two highs at 15048 and 15062.
Dec. British Pound: Another breakout day rally; 16748 is the next upside target.
Dec. Canadian Dollar: Breakout day rally; the Nov. high at 9599 is the next rally target.
Dec. Gold: Breakout day rally into new highs. 1174 is now support; I have 1188 and 1192 for rally targets.
Dec. silver: Buy day rally; 1870 then 1883.5 is resistance.
March Cocoa: A good example of a breakout sale yielding a TT buy day. Last week’s high at 3319 is the rally objective.
March Sugar: You know it’s a dog when it’s a commodity rallying today. Resistance is 22.40; yesterday’s low of 22.00 is support.
March Coffee: A buy day rally; cleared first resistance at 138.80l Monday’s high at 139.40 is next.
March Cotton: Breakout setup (ID/NR4). Monday’s high of 75.67 is the upside breakout point.
Jan. Crude Oil: It’s on a buy day signal; regained the old low at 76.27. The inventory report is out at 9:30. As always, look for a directional move around it.
Feb. Live Cattle: It’s on a TT buy day signal; yesterday’s doji complicates it. There’s trend line resistance at 85.72; 85.27 is Fib support.
Jan Soybeans: Regained the 1050 pivot area overnight. Monday’s high at 1066-6 is the rally objective.
March Wheat: Buy day; 578 is the rally objective. Yesterday’s low of 552 to psychological support of 550 is important.
March Corn: Another buy day setup. 400 is first resistance; 407-4 is the 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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