My technical indicators show Buy Signals for Copper; but I'm still bearish on Gold, Silver, the Soybean Complex and most of the Grains. GRAINS: 07/08/09 Slightly higher closes yesterday for oats but lower to sharply lower closes for rough rice, corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. All of the wheat continue to look very weak with Minneapolis and KC making new recent lows and closes while Chicago had a new contract low and close as they continue their strong downtrends along with the corn and bean complex. Corn made a new contract low and close again. Rough rice settled slightly lower this time but is still in the middle of a trading range(12000 and 13000 basis the September contract) that started in April as shown by the weekly chart below. Long term its trend has been down but has been consolidating for quite a while. Oats were the only grain to settle higher albeit not by much. The 220 area basis the December contract has become a critical area to hold followed by 200 as shown by the weekly chart below. The bean complex closed sharply lower with the beans, meal and oil making new recent lows and closes going back a several months. I continue to maintain Sell Signals for the Bean complex, Corn, Oats and Wheat. Please feel free to contact me for details.
METALS: 07/08/09 Higher closes Tuesday for gold but lower for copper, silver and platinum. Copper is still in an uptrend overall but its potential topping formation is getting more pronounced. Gold has still hung on to my sell signal and is actually in a potentially larger topping formation. Silver made another new recent low close. My long term objective is still 1100 basis the September contract while the short term is the 1300 area. Platinum settled lower again with the potential of a huge drop technically. Buy Signal for Copper; Sell Signals for Gold, Silver and Platinum.
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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at email@example.com or call toll-free (888) 281-4158.