December Dow Jones – Two closes above the ascending median line suggest higher prices should follow. The market retested the line early in the session and found enough support to push the Dow Jones futures to a new high. The bullish 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 –The low close on 11/4 formed a new bullish swing pattern on the 20-day SMA and provided a springboard for a new bullish price 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. Buy the Yen at 1.1160 stop, with a stop loss at 1.1005.
December British pound – Long from 1.6480 –exit price @ 1.6605 – The British pound traded above the ascending median (center line) on the second test since October 23rd and one day before the November 10th reversal swing date. The market pulled back and closed lower on Tuesday…the projected reversal swing date. A lower close in an upward trending market is typically considered a continuation pattern and suggests higher prices can follow. Buy the BP at 1.6845 stop, with a stop loss at 1.6555.
December Eurocurrency – Long from 1.4945 – last price @ 1.4977 - 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. This type of pattern can precede an extended price move. Hold the long position, with a stop loss at 1.4820.
December Copper – Long from 299.75 – exit price @ 294.95 – Copper continues to move sideways and away from the upward sloping median line, indicating a loss of upward momentum. Copper traded below Monday’s low, but did find support at the 20- day SMA. I’ll continue to monitor this market, but stand aside until a new pattern develops.
December Crude oil –A new day seems to mean a new direction for the Crude oil, as Crude continues to consolidate. 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 – Corn was supported today, by the U.S.D.A Crop Production Report that projected the corn crop at 12.921 billion bushels, down from the October estimate of 13.018 billion. The estimated yield was also reduced from 164.2 bushels per acre to 162.9. Although the estimates were lower than expected, they were not significant. Therefore, the figures were factored into the market soon after the open and traders began looking to other indicators for direction.
After opening lower, Corn turned higher and continued to climb into the close, finally finishing the day 8 ¼ cents higher. The rally should continue into Wednesday’s reversal swing date and push the Corn into the $4.05 target objective.
December Cotton – Heavy rains continue to hamper harvest and damage crops in the southern states. Looking at the charts, cotton has moved sideways over the past three weeks until it reached the upward sloping parallel line and the 20- day SMA…forming a five-wave continuation pattern in the process. Buy Cotton at 69.02 or lower, with a stop loss at 67.20.