December Dow Jones - Dow Jones futures rallied as the dollar slid to a new low after the Group of 20 nations agreed to maintain economic stimulus efforts. The Dow Jones futures rallied to a new high and crossed over the ascending median line. This is a momentum indicator, suggesting the upward trend is still intact with a short-term target objective at 10275 and longer-term target objective of 10525. The next reversal swing date is due on November 19.
December Japanese yen -Short from 1.1020 -exit price @ 1.1125 - The original short position was closed @ 1.1125 for a loss after the Yen reversed course, following a rebound off the 20-day SMA. The low close on 11/4 formed a new bullish swing pattern on the 20-day SMA and provided a springboard from the newly formed bullish reaction swing. This pattern also signaled an end to the short-term downward correction and the resumption of the prevailing bullish trend. The new TR pattern portends an upward move to the 1.145 target objective on or before the next reversal swing date, due on 11/18.
December British pound - Long from 1.6480 - last price @ 1.6755 - The British pound traded above the ascending median (center line) on the second test since October 23rd and one day prior to the reversal swing date...due on November 10. It is time to raise the profit stop as a precaution to a possible reversal. Hold the long position and raise the stop to 1.6605.
December Eurocurrency - The EU has formed a short-term reaction swing pattern inside the longer-term reaction swing. The market rallied off this pattern on Monday and closed sharply higher. However, this type of pattern is typically followed by several higher days, so there is still time to enter on a slight pullback. Buy the EU at 1.4945 or lower, with a stop loss at 1.4820.
December Copper - Long from 299.75 - last price @ 297.65 -Codelco will increase the sale surcharge on copper for clients in Japan and South Korea by as much as 16 percent. This is the first increase since 2007 and is a result of renewed demand from China, who is currently the world's largest consumer. Copper continues to find support at the 20-day SMA, but has been moving sideways into the November 10 reversal swing date. Hold the long position and move the stop loss to 294.25.
December Lean Hogs - Long from 54.30 - exit price @ 56.67 - Lean Hogs traded above the prior high and fell just short of reaching the sloping reaction line target objective, but profit-taking reversed the market. Hogs reversed and traded below yesterday's low, forming an outside day with a negative close, signaling the rally is over. Therefore, I recommended exiting the long position at market. The position was closed at 56.67 for a nice gain. In the last two sessions, Lean hogs have lost over 290 points, but may be ready to find support at the 20-day SMA. This may mark the beginning of a rebound and test of the recent high. I need to see more price action before taking another position.
March Sugar - Heavy selling pressure has pushed the market below the 20-day SMA, where Sugar did find support at the lower parallel line. The market is still in the consolidation phase and is showing a possible TR pattern...so I think you still want to keep Sugar on your trading radar. A rally above 23.95 will confirm the bullish pattern and trigger the next run.
December Crude oil -A new day and a new direction for the Crude oil and Friday's dismal jobs report pressured the market and closed the long position at 79.05 for a loss, but weekend weather reversed the trend for Monday. It is hard to find a direction, with the news changing daily and sometimes hourly. On the other hand, the chart is showing a potentially bullish reaction swing forming inside the wider reaction swing. If confirmed, this type pattern can be very powerful and trigger strong price action. Buy the Crude oil at 80.55 stop, with a stop loss under the pivot low.
December Heating oil - The swing pattern failure has formed a bullish setup for the Heating oil. A trade above Monday's high will trigger a buy signal and portend a rally to test the prior high. Buy Heating oil at 2.0925 stop, with the stop loss below 2.0105.
December Corn - Nov. 9 (Bloomberg) -China is estimating that its Corn production will be much less than previously forecast. The world's second largest producer estimates production has plunged by a more-than-estimated 13 percent to a four-year low because of droughts in the main growing regions. Traders will be watching Monday's afternoon's Crop Progress Report and Tuesday morning's Crop Production Report for information and clues as to the direction in Corn futures. Early estimates suggest traders are expecting to see 35% to 45% of harvest complete. Corn has formed an interesting pattern over the past few days that could trigger a move in either direction.