Comments for January 22, 2010


Will the Bear Market in the Grains sector continue?

GRAINS: 01/22/10 Lower to sharply lower closes yesterday for rough rice, Minneapolis, Kansas City  and Chicago wheat along with soybeans, soymeal, soyoil, corn and oats once again. All of the wheat had poor closes again making new recent lows and closes with Minneapolis in a support area needing to hold the 500 (Mar.) area while KC and Chicago bounced off their respective support areas to close lower but at the upper end of the day's trading ranges. Corn made its lowest low and close since Ocober 8th again with support under 350 basis the March contract. Traditionally the grains have filled around 90% of their gaps and the December corn contract has one at 392 1/2. Rice settled sharply lower again closing below support looking very bearish Oats made its lowest low and close since September continuing its freefall since the 11th. The bean complex closed lower again with beans and oil making their lowest lows and closes since October. Sell Signals for Wheat, Corn, Oats, Rice and the Soybean complex.

METALS: 01/22/10  Lower closes Thursday for silver, gold, platinum and copper again. All of the metals continue to be in up-trends but have been forming potential tops and are near possible sell signals. Next week should tell the story. Copper is still in a uptrend but had a failed bull triangle which means its retracement is probably not over. Gold went below the important 1100 area but bounced back when the dollar sold off from its highs of the day. Silver is now in a  support area. Platinum close down following through from reversal type action on Wednesday but still continues to be the strongest of all the metals at this time.

FINANCIALS: 01/22/10 Higher for the notes and bonds while unchanged for the eurodollars. The eurodollar continues to be in a long-term uptrend closing unchanged on its contract high while the notes and bonds made new recent highs and closes again