December Dow Jones - Long from 9960 - last price @ 10052 - Dow Jones futures rose on Monday, sending benchmark indexes to a one-year high, on better-than-estimated earnings and speculation the economy is healthy enough for policy makers to unwind efforts to shore up the financial system. 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 @ 1.4943 – The euro rallied against the dollar today as the Federal Reserve signaled it will continue to keep rates at record lows. The euro dipped to a low of 1.4826, missing the stop loss by one point, before finding support on the ascending median line (center line) and began the climb back to test Friday’s high. – Hold the long position and keep the stop loss at 1.4825 with a target objective of 1.5100.
December Japanese yen – Short from 1.1045 – last price @ 1.1034 – After confirming the short-term swing pattern (October 9th to October 14th) the Japanese yen traded sharply lower and has posted three closes below the 20-day MA. – Hold the short position with the stop loss at 1.1125.
December Gold – The upward trend in Gold paused after the market reached the descending reaction on the predicted October 14th reversal swing day. Following the new high, Gold closed lower on the following two trading days, but managed to stage a slight rebound on Monday. It is very evident the overall trend is still bullish, but so far the market is meeting some stiff resistance on the retest of the reaction line. Monday’s higher close has form a possible short-term bearish swing pattern that could “setup” another sell signal for a drop to the $1,035.00 to $1,030.00 price range later this week. I’m waiting one more day to see if the pattern confirms before making a new recommendation.
December Soybean oil – Long from 35.59 – last price @ 37.59 –Soybean oil continued the upward climb during Monday’s session as weather concerns keep supporting the soybean complex. Traders will be keeping a sharp eye on Monday afternoon’s Crop progress report more insight into harvest progress. - Hold the long position, with the stop loss at 36.40.
December Soybean meal – The four-day setback has formed a new reaction swing pattern and the final segment of a bullish TR swing pattern after finding support above the 20-day MA and turned higher. Over the last few days, Soy meal staged a strong rally, as it broke out of the longer-term continuation pattern. The current correction is forming a potential bullish “setup” for a longer-term buy signal. Buy Soy meal at 302.50 stop, with a stop loss at 289.00.
December Soybeans – A bullish TC swing pattern has formed under the ascending centerline. This is the final segment of a bullish TR swing pattern that could confirm the beginning of a new bullish reaction cycle. Buy Soybeans at $10.13 ½ stop, with a stop loss under the (D) swing low.
December Copper – Long from 288.75 – last price @ 295.30 - Octagon Research says China's booming economy may even stronger than people thought, with most analysts underestimating the country's copper consumption. Adding to this longer-term bullish secenerio, miners is Peru began a nationwide strike and the strike at the BHP Billiton Ltd mine in Chile entered its seventh day. Looking at the charts, this breakout followed a period of consolidation where December Copper futures had formed a longer-term continuaiton pattern, suggesting rally into the descending reaction line target objective currently at 326.00.- Hold the long position with the stop loss at 288.75.
December Cotton – Long from 65.60 – last price @ 66.47 – The possibility of improving weather conditions pressured the December Cotton future on Monday. The market traded above high of Friday’s “inside day” early in Monday’s session, but began to fade into the close. This could lead to more downside pressure in the near term, so I suggest moving the stop loss up to 66.25.
December Wheat – Bullish swing pattern has formed on the descending median line and above the 20- day MA. A trade above $5.29 will confirm the pattern and trigger a buy signal. – Buy Wheat at $5.29 ¾ stop with the stop loss at $4.96.