December Dow Jones - Dow Jones futures rallied on Monday, rebounding from the hammering it took on Friday. Monday's market was responding to news of profits posted by Ford Motor Company and better than expected increases in home sales and construction starts. Manufacturing expanded in October at the fastest pace in more than three years.
While Dow Jones futures managed a rally today, the market is still in a short-term downward trend with the next reversal swing day due on Tuesday. The descending median (centerline) suggests there is support at 9550. A drop to this support level on the projected reversal swing day could set up a reversal and short-term rally. On the other hand, a rally into the reversal swing day would be a negative pattern and would set up another selling opportunity. I need to wait one more day to see if a new pattern forms to provide a swing trading strategy opportunity on the reversal swing day.
December Japanese yen -The Yen began the evening session with a higher opening triggered from carry-over strength from Friday's rally, but that quickly ended after the market breached the 60% sell zone...reaching a high of 1.1183. The Yen was unable to sustain the rally and reversed and traded lower for the remainder of the session. I consider this a potentially negative pattern and a double cross pattern setup. A confirmation of the sell pattern would portend a lower trade into the next reversal swing date, due on November 11. Sell the Japanese yen at 1.1020 stop, with a stop loss at 1.1185.
December British pound - Long from 1.6425 -- The pound fell for a second day, effectively ending the five-day rally on speculation that forced asset sales by banks may weaken the country's financial institutions. The long position was closed at 1.6325.
December Gold - Long from $1048.50 - The long position closed at $1053.50 for a nice gain. We'll wait for the next pattern setup for next entry.
December Silver - Silver is forming a weak swing pattern under the 20-day SMA. The last downward price-swing bounced off the descending median line, but couldn't find enough momentum to hold the rally. Sell Silver at 16.12 stop, with a stop loss at 16.72.
January Soybeans - Long from $9.93 ½ - last price @ $9.98 - The market surged after Soybeans traded below the low of Friday's inside day and then above the high of the inside day. The last session rally also confirmed the double cross pattern. Hold the long position and move the stop loss to $9.71.
December Soybean meal -Long from 297.50 - last price @ 302.70 - Soy meal continues to rally off the October 28th low and the bullish double cross pattern. A bullish A-B-C continuation pattern has formed over the past three weeks and appears to be providing upward momentum for the Soy meal. Hold the long position and move the stop loss to 292.50.
December Copper - We banked a nice gain last week when the pattern suggested the Copper would undergo a correction back to the 20-day SMA. Now that the 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. Buy Copper at 299.75, with a stop loss at 291.25.
December Lean Hogs - Long from 54.30 - last price @ 57.87- After taking a day to rest and build energy, Hogs resumed the rally today and closed 117 higher. Friday's small sell-off was held by support from the ascending median line. I think this will act as a springboard for a run to the reaction line target objective at 59.25. Hold long position, with the stop loss at 56.25 and target objective of 59.25.
March Sugar - Long from 22.95 - last price @ 23.44 - Sugar rallied for the third day in a row on speculation that India, the world's largest importer of Sugar, will boost purchases. The recent rally has also confirmed the final pivot low in the 5-wave continuation pattern and signaled the beginning of the next bullish leg of the ongoing bullish trend. Hold the long position with the stop loss at 22.10.
December Crude oil - Crude oil bounced off the 20-day SMA and closed higher after seven days of decline. The market rose on reports that manufacturing expanded in the U.S. and China in October, signaling energy demand is increasing in the world's two biggest oil-consuming countries. The bullish TC pattern (trend continuation) pattern remains in play at the crossing point of the descending reaction line and the ascending median line, setting up a bullish buy pattern. 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.