December Dow Jones - Dow Jones futures extended overnight losses, as the overseas markets show concern that the recent rally has outpaced the prospects for economic growth. Looking at the charts, I can see the Dow Jones futures reached the reaction line one day before Thursday's projected reversal swing day. The confluence of Time and Price is suggesting the bullish cycle may have peaked. Friday's trail day pattern could provide a clue as to the next direction.
December Japanese yen -Long from 1.1160 - last price @ 1.1233 - The yen climbed to a two-week high against the euro and the dollar strengthened as stock markets fell, discouraging demand for higher-yielding assets. Technically, the Yen closed on Wednesday as an inside day with the closing price near the low of the daily range. Wednesday was also the projected reversal swing date. The two consecutive lower closes, leading into the reversal swing date, formed a bullish swing pattern, confirming a continuation of the upward trend. The subsequent rally traded above the prior day's high, but ran into resistance at 1.1283, when the Yen reached the descending parallel reaction line. The trend should continue higher into the next reversal swing date due on 11/23. I will give the market one more day to see if it can break the resistance at 1.1285. Hold the long position and move the stop loss to 1.1185, with a target objective of 1.1365.
December British pound -Long from 1.6805 - last price @ 1.6653 - BP closed lower for the third day in a row, but remains above the 20-day SMA. The recent pivot high was the third higher high and suggests the upward trend is reaching exhaustion. Friday's reversal swing date will be a valuable indicator as to the next direction for the British pound. For now, hold the long position, with the stop loss at 1.6555.
December 10-year Treasury Notes - Six month Treasury bills reached a 50-year low and 10-year Notes paused inside the bullish trend, with an inside day on Wednesday, followed by an outside day on Thursday. This is a continuation pattern and offers a good entry. The cycle is still bullish, with a target objective of 121-00. Buy T-Notes at 119-31 stop, with a stop loss at 119-09.
January Crude oil -Long from 78.85 - last price @ 78.24 - The lower stock market pressured the energies futures today. Crude oil dropped to a low of 77.61 before rebounding to 78.74 near the close. The market has remained in the same consolidation pattern over the past 21 days, but appears to be forming a bullish TR pattern. Thursday's trading session closed inside the 60% buy window. Hold the long position, with the stop loss at 77.05.
January Soybeans - Long from $10.19 - last price @ $10.39 - Exporters are suggesting soybean prices may gain 20 percent by March, as economic growth in China boosts demand for animal feed and cooking oil. China is the world's largest importer of soybeans.
Soybeans opened lower, following the weak close on Wednesday, but buyers entered the market near support and Soybeans resumed the upward trend and erased the early session loss. The cycle remains bullish into the 11/24 reversal swing date, with a target objective of $10.75. Hold the long position, with the stop loss at $10.20.
December Corn - Corn completed a short-term bullish cycle when it reached the ascending median line (center line) on the projected reversal swing date of 11/17. The market reached the confluence level, where the ascending median line and descending reaction line crossed ($4.09 ½) on Wednesday, but quickly turned lower and ended the day below the previous close and near the low of the daily range. This is a negative pattern that can precede a trend shift. Sell December Corn at $4.03, with a stop loss at $4.11.
January Orange Juice - Long from 118.50 - last price @ 113.95 - OJ is testing support at the lower ascending parallel line. Hold the long position, with the stop loss at 110.00.
March Cocoa - After posting several closes below the bullish trend line, the market traded back to the 20-day SMA. This has set up a potential double cross moving average pattern. Sell Cocoa at 3142 stop, with a stop loss at 3265.
January RBOB Gasoline - The RBOB broke above the zigzag consolidation on Wednesday and then pulled back to the 20- day SMA on Thursday. This has set up a potential bullish TR pattern with a trigger price at 2.0495. If filled on the long signal, place the stop loss below the pivot low.
January Heating oil - Heating oil is retesting the ascending lower parallel line, after breaking out of the three-week consolidation and forming a possible TR pattern.
December Soybean oil - A new reaction swing has formed inside the upward trend. This is a bullish pattern and portends another upward leg in the existing trend. Buy at 40.02 stop, with the stop loss at 39.05.