December Dow Jones - Long from 9960 - last price @ 9969 - Dow Jones futures traded lower today after a disappointing report on housing starts overshadowed better-than- estimated earnings from several companies. 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 @ 1.4930 – The Euro posted a new high, but failed to hold on to the early gains and drifted lower until it found support at the ascending median line. The upward trend is still on track to trade higher into the October 22nd reversal swing day. – Hold the long position with the stop loss at 1.4825.
December Japanese yen – Short from 1.1045 – last price @ 1.1026 – 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 – Gold posted a secondary high after a failed attempt to test the prior high of $1,072. This price action has formed a short-term sell pattern that could send the market lower over the next couple of days. A trade below $1,048.20 would trigger a sell signal with a target objective of $1,032.00. The dominant trend is still bullish so this should be viewed as a short-term swing trade. – Sell Gold at $1,048.20 with a stop loss at $1,069.50.
December Soybean oil – Long from 35.59 – last price @ 37.47 –Soybean oil continued the upward climb during Monday’s session as weather concerns keep supporting the soybean complex. The Crop Progress report, released Monday afternoon, shows that soybean harvest is only 30% completed, versus the 5-year average of 75%. More rain is in the forecast. - 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 301.80 stop, with a stop loss at 289.00.
November Soybeans – The Crop Progress shows that weather conditions continue to slow down harvest with only 30% of soybeans harvested at this time. The 5-year average for this time of the years is 75% harvested. 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 @ 293.45 – U.S. copper futures closed lower today after reaching a 13-month high and flirting with the $3.00 mark. However, the rebound in the U.S. Dollar triggered profit taking among traders. The technical picture still appears to be bullish following the breakout after a period of consolidation. - Hold the long position with the stop loss at 288.75.
December Cotton – Long from 65.60 – last price @ 67.23 – Not much new on the Cotton chart as the market closes with another “inside day”. I consider an “inside day” as a rest day or a day of indecision as traders wait for something new to move the market. – Hold the long position with 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.
December Lean Hogs – Tuesday’s sharp sell-off found support at the 20-day MA and formed a bullish swing pattern. – Buy Hogs at 54.97 stop with a stop loss at 52.05.