December Dow Jones - Long from 9960 - last price @ 10050- Dow Jones futures traded on both sides of the unchanged mark throughout most of the trading session before staging a late session rally to test Wednesday's high. The market was conflicted by better-than-estimated earnings from Travelers Cos., AT&T Inc. and McDonald's Corp. and a bigger-than- projected increase in jobless claims. In the end, the prevailing trend won out and market went with the path of least resistance. The cycle remains bullish into the October 27th reversal swing date, with a target objective of 10100, followed by 10300. Hold the long position with a stop loss at 9825.
December Eurocurrency – Long from 1.4825 – last price @ 1.5026 – The euro was unable to trade above Wednesday’s 14- month high even with renewed speculation that the U.S. job market will be slow to recover and China will end fiscal and monetary stimulus. I believe Thursday’s “inside day” pattern is just a rest period before another test of the high. The next reversal swing day is due on October 29th. – Hold the long position with the stop loss at 1.4890 and a target objective of 1.5150.
December Japanese yen – Short from 1.1045 – last price @ 1.0954 – December Yen futures bounced off the ascending parallel line support where it marked the end of a five-wave sequence. If this support holds, it would mean the market has completed a continuation pattern and could begin to set up a bullish TR swing pattern. So far, the downward slide has move right along the descending reaction line and would need a close above the reaction line to indicate a trend shift. While it is too early to tell, the price action over the next couple of days will tell us a lot more about the future direction of the Yen. – For now, hold the long position with the profit stop at 1.0975 and a target objective of 1.0910.
December Gold –Short from $1,048.00 – last price @ $1,060.00 - Gold posted a secondary high after a failed attempt to test the prior high of $1,072. This price action has formed a short-term sell pattern that could send the market lower over the next several days with a target objective of $1,035.00. The dominant trend is still bullish so this should be viewed as a short-term swing trade. – Hold the short position with a stop loss at $1,065.50.
December Soybean oil – Long from 35.59 – last price @ 38.30 – The market closed as an “inside day” on the projected reversal swing day. This type of price action on a reversal swing day is typically a continuation pattern and should keep the current trend intact. - Hold the long position and move the stop loss to 37.05.
December Soybean meal –Long from $301.80 – last price @ 300.80 – Heavy rain continues to fall throughout the Midwest and on the Mississippi River Delta, making the harvest difficult for corn, soybeans. Soybean meal found support at the 20- day SMA and closed higher for two straight days. A new bullish cycle is beginning to emerge and portends a rally to the descending reaction line target at 325.00. – Hold the long position with the stop loss at 289.00.
November Soybeans – Long from $10.13 ½ - last price @ $10.05 ¾ - Heavy rain continues to fall throughout the Midwest and on the Mississippi River Delta, making the harvest difficult for corn, soybeans. Wednesday’s sharp rally stopped at the descending reaction line. Thursday’s “inside day” will help the market build energy and retest the reaction line and possibly break through on Friday. - Hold the long position with the stop loss at $9.75.
December Copper – Long from 288.75 – last price @ 302.60 – Copper futures closed lower and finished as an “inside day” after reaching a 13-month high of 305.75 on Wednesday. The rally paused on Thursday, due to a slight rebound in the U.S. Dollar. However, the cycle remains bullish into October 27th and portends a rally to the reaction line target at $325.00. - Hold the long position and move the stop loss to 289.75.
December Cotton – Long from 65.60 – last price @ 68.55 – Heavy rain continues to fall on the Mississippi River Delta, causing problems in the cotton harvest. The recent rally paused today as cotton was pressured slightly by the higher dollar. This pause will be short-lived as the market is forming a bullish swing pattern and appears poised for another upward swing into the October 30th reversal swing date.- Hold the long position with the stop loss at 66.25.
December Wheat – Long from $5.29 ¾ - last price @ $5.51 3/4 -Wheat formed a bullish reaction swing pattern on the descending median line. After a two-day pullback to test the 20-day MA, wheat surged higher and triggered the buy signal. Thursday’s higher close is the second consecutive closes above the (C) pivot and portends a price move to the ascending (blue) median (centerline) line. – Hold the long position with the stop loss at $5.12.
December Lean Hogs – The second largest U.S. pork producer told a House of Representatives subcommittee that the USDA must make funds available immediately to save hog farmers from bankruptcy. Looking at the price chart, I see Hogs are still in a newly formed upward trend. The market did trade lower on Tuesday, but found support at the 20-day MA and appear to be forming a possible bullish swing pattern. – Buy Hogs at 54.97 stop with a stop loss at 52.05.
March Sugar – Sugar is in the final stage of completing a 5-wave continuation pattern. If you are not familiar with this pattern you can see that same type of pattern in the Heating oil and Crude oil, just before the latest rally. The current pullback could reach the 60% buy window (22.55) before turning higher. Even with the pullback, the market is still within the parameters of the bullish pattern. – Buy Sugar at 24.27 stop with the stop loss below the pivot low.