December Dow Jones - Dow Jones futures rallied today after finding support at the lower ascending parallel line and a double cross of the 20-day SMA. The rally was triggered after the GDP report showed growth in the economy, suggesting an end to worst contraction in seven decades. The rebound followed Tuesday's projected reversal swing day and missed the swing low by one day. However, the rally stopped short of entering the 60% sell window and reaching the descending reaction line resistance. The market may have some trouble at this level, so I will need to see another session before taking a new position.
December Japanese yen -After closing sharply higher on Wednesday's reversal swing day, the Yen reversed and traded over 90 points lower after the GDP report showed the economy grew more than economists forecast for the third quarter. The bearish reversal swing day pattern is working in conjunction with a 20-day SMA double cross pattern to setup a TC pattern sell signal for the Yen. (The double cross pattern was illustrated and explained in Tuesday's webinar.) - Sell the Yen at 1.0892 stop with a stop loss at above the swing high.
December British pound - Long from 1.6425 - Last price at 1.6530 - The British pound was the strongest of all the major currencies today as it rallied off support provided buy the 20-day SMA and descending parallel line. A trade above 1.6690 will be enough to confirm the bullish swing pattern and the longer-term TR pattern that follows the 5-wave continuation pattern If confirmed, the continuation pattern portends a new bullish leg that could send the pound up to 1.8500. -Hold the long position and raise the stop loss to 1.6325.
December Gold - Gold bounced off support at the upward sloping parallel and has a double cross of the 20-day SMA. - Buy Gold at $1048.90 stop with a stop loss at $1032.50.
January Soybeans - A bullish TR pattern is forming under the ascending median line and above the 20-day SMA. If confirmed, the TR pattern would portend a new bullish leg and a test of the $10.68 high posted on August 13. - Buy Soybeans at $9.93 ½ stop with a stop loss at $9.60.
December Soybean meal -A bullish continuation pattern has set up the Soy meal for another run higher. If Soy meal rebounds and trades above Tuesday's high (297.00) it would confirm the swing pattern failure to the downside. This type of price action can be followed by a significant move in the opposite direction. - Buy the Soy meal at 297.50 stop with a stop loss under the swing low.
December Copper - We banked a nice gain earlier this week when the pattern suggested the Copper would undergo a correction back to the 20-day SMA. Now that market has reached the downside objective and rebounded off the SMA and the upward sloping parallel line, it is time to look at the long side again. A confirmation of the new TC pattern will trigger the next bullish price swing towards the upper reaction line target objective as it approaches the reversal swing day due on November 11.
December Lean Hogs - Long from 54.30 - last price at 57.07- Lean Hogs continued to rally today as the Chinese officials agreed to end their ban on imports of U.S. pork. The ban was created six months ago in response to the outbreak of the H1N1 virus and was lifted after Chinese health officials finally agreed that eating properly cooked pork will not give you H1N1. - Hold the long position and move the stop loss to 55.55 with a target objective of 58.50.
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 22.95 stop with the stop loss below the pivot low.
December Crude oil - A bullish TC pattern (trend continuation) pattern has formed at the crossing point of the descending reaction line and the ascending median line. The market closed lower on Monday's projected reversal swing day forming a possible bullish setup. - Buy Crude oil at 80.25 stop with the stop loss at 79.75.
December RBOB Gasoline - A bullish TC pattern has formed on the descending reaction line. This is the first swing pattern to form after the TR pattern, therefore, it will most likely mark the center on the longer-term trend. - Buy the RBOB at 2.0485 stop with a stop loss at 1.9680.