Comments for February 25, 2010

Looking Ahead to Thursday by reflecting back on Wednesday's trading action

The Relationship between the US Dollar Index and Stock Index Futures

INDICIES: 02/25/10 . Higher closes Wednesday for the Dow, S&P's and Nasdaq but no changes technically once again. All of the indicies continue to be in short term uptrends while forming large potential tops at this time. The dollar continues to be in a uptrend which should keep a lid on the indicies working higher and probably making my buy signals short-lived. The reason I say this is that the fed keeps talking about rates probably holding or moving higher but the has held up well in spite of this kind of talk.

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 GRAINS: 02/25/10  Higher closes yesterday for corn, Minneapolis, Kansas City and Chicago wheat along with soybeans and soyoil while lower for oats, rough rice and soymeal. All of the wheat are still holding their respective support areas with my buy signals in tact. Corn gave me a buy signal on the 22nd of Janurary which I forgot to change at the end of the grain comments below until today. I do want to apologize for my error. Corn closed higher which continues to show me how strong this market is in the face of bearish news throughout most of the grain producing countries. Still expect choppy markets going into the growing seasons for most of the grains. Corn has a gap at 403 in the May contract and as I mentioned many times before, throughout history grains fill over 90% of their gaps sooner or later. Rice settled lower still is in a major downtrend overall while oats also settled lower for the fifth consecutive trading session making its lowest low since January 22nd back to continuing its downtrend since the middle of November now giving me a belated SELL SIGNAL. The beans and oil settled higher while meal closed lower and my sell signals are still in tact.

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