Comments for December 8, 2009
LOOKING AHEAD TO TUESDAY BY REFLECTING BACK ON MONDAY’S ACTION
The Bean Complex is in an Uptrend; but Sell Signals for Wheat
Today is 2nd Day for Currency futures “roll-over.” March 2010 is now the front-month for currency futures.
GRAINS: 12/08/09 Higher closes yesterday for soybeans, soymeal and soyoil but lower for rough rice, oats, corn, Minneapolis, Kansas city and Chicago wheat. All of the wheat joined from previous sessions the corn and oats with SELL SIGNALS. With the dollar holding, energies working lower and demand weak corn has been falling although somewhat grudgingly. Rice settled lower but in the upper half of today's trading range still looking very strong overall. Oats equaled its low on October 27th this time but made its lowest close since October 9th. As you can see oats have been selling off since early November. The bean complex, on the other hand, is still in a uptrend with beans, meal and oil closing higher. We have been finally seeing what I expected for sometime meaning the bean complex should be the strongest fundamentally and spreaders should be buying beans and selling corn or wheat against them.
FINANCIALS: 12/08/09 Higher settlements for the eurodollars, notes and bonds. All of the indicies are still in up-trends long term were hurt by Friday's action. Still the the bonds and notes could be bought since in support areas even though they are both forming potential tops along with the eurodollars. Like I've said before never assume anything until it's verified by your type of trading.
ENERGIES: 12/08/09 Sharply higher for natural gas but lower for crude and heating oil along with the rbob. The crude, heat and rbob have been unable to penetrate crucial areas to turn these markets higher as their trend continues lower since October with crude making its lowest close in over 2 months . Gas closed sharply higher but is still in a very strong down-trend overall. while now forming a potential bottom