December Dow Jones - In the last issue, I said the bullish cycle is still in play into the November 19th reversal swing day, but I was looking for a two-day pullback to provide another buying opportunity...the market only gave us one. Dow Jones futures climbed to a 13-month high, as Asian government leaders pledged to maintain economic stimulus spending. The Dow Jones futures should continue to move towards the reaction line target objective at 1,0535.
December Japanese yen -Long from 1.1160 - last price @ 1.1224 - The Yen bounced off the 20-day SMA and ended the three-day pullback. Friday's higher close confirmed the new reaction swing pattern within the longer-term bullish cycle. The reverse/forward count from the new swing pattern coincides with the 11/18 reversal swing date projected by the 10/30 - 11/4 TR swing pattern. The Yen should continue to climb toward the 1.1368 target objective, as it approaches the 11/18-reversal swing date. Hold the long position, with the stop loss at 1.1140.
December British pound -Long from 1.6805 - last price @ 1.6828 - British pound rebounded after the two-day correction tested and rebounded off the 20-day SMA support. The British pound has crossed above the ascending median (center line) and is approaching the prior high at 1.6839. A new high will confirm the bullish reaction swing and portend a run at the previous high of 1.7043 on or before the 11/20-reversal swing date. Hold the long position, with a stop loss at 1.6555.
December Eurocurrency - Long from 1.4945 - last price @ 1.4974 - The Euro briefly erased its gains. Federal Reserve Chairman Ben S. Bernanke said he will work to help keep the greenback strong in his speech during today's session. However, the price dip was short-lived, as the euro rebounded as soon as the speech ended. The market found support at the 20-day SMA, after it formed a double cross pattern on Friday. The reaction cycle remains bullish into the 11/20-reversal swing date and the euro should continue to trade towards the reaction line target objective, currently at 1.5150. Hold the long position, with a stop loss at 1.4850.
December 10-year Treasury Notes - The bullish TR swing pattern of 10/15 - 11/4 is projecting a run to 121-00, as it approaches the November 19th reversal swing date. Buy the T-Notes at 119-08 or lower, with a stop loss at 118-19.
December Crude oil -Crude oil posted the biggest one-day rally in over a month, as the dollar continues to weaken and the S&P 500 Index traded to a 13-month high, bolstering confidence that the global economy and energy demand are recovering. Exxon Mobil CEO and Chairman, Rex Tillerson, told CNBC that the oil market is well supplied, with inventories at record levels globally, but prices are getting a big boost from the dollar's fall. Inventory levels are at historic highs levels - especially in the U.S., Tillerson said. But a foreign exchange effect is keeping prices higher, despite the amount of oil available. If you put the price of oil, which is priced in dollars around the world, and if you look at what some of the currency effects are with the weak dollar - in our view that is contributing about $20-25 a barrel to the price, he said. In other words, the lower dollar will continue to support the Crude oil. Buy Crude oil at 77.80 or lower, with the stop loss at 76.25.
December Gold - In the last issue, I talked about the Gold hitting up against resistance that could be a possible high. I then said Friday, November 13, was a projected reversal swing day and I wanted to see what type of signal the reversal date would provide. Friday began with a lower open and a trade below the prior day's low, before strong buying entered the market and reversed the direction. Gold closed $10.00 higher, but more importantly; the reversal swing date pattern was also bullish. The momentum increased over the weekend and Gold surged to a new record high of $1,144.20. Gold should continue higher, with the next target objective at $1,160.
December Corn - The three-day pullback from the November 11th high found support at the 20-day SMA. The weaker dollar provided support for the Corn and the subsequent rally to test the recent high. The market is again poised to test the ascending median line for the third time. The market appears to have enough momentum to continue to climb into the November 19 reversal swing date.
January Orange Juice - Long from 118.50 - last price @ 113.20 - OJ is testing support at the lower ascending parallel line. Hold the long position, with the stop loss at 110.00.
December Cattle - Cattle remain in a strong downward trend. The market has posted two-higher closes on a weak recovery to the descending median line. This line should be a line of resistance and may turn the market lower. Sell Cattle at 82.60 stop, with a stop loss at 83.95.