Today we have seen the dollar continue to show strength over night and through today’s session… In direct response to that, we have seen Gold drop ten dollars off its high, and crude drop over two dollars from a high of 80.40, almost two dollars down 78.32… Time will tell if this is a pause to re-group for a blast higher, or perhaps we saw too steep of a move, with a 13 dollar jump in 17 days of trading…
I would personally look for a 6.50 cent pullback, or one half of the up move from 67 to 80… that would pin a pull back target of around 74.50… At that point, there should be good technical support for the bulls. As for gold, we have seen a healthy 13 dollar trading range today, with a high at the always fun 1069 level, (nice to see someone in NY has a sense of humor) and a low of 1052.60…
For now, until we have a significant technical move, it looks like we are having a pullback and a digestive sideways to lower trade…
In November beans, it still looks like we are completing the pennant formation I wrote about this morning.. It is still looking like a viable chart formation which will give us good directional trade once its parameters are violated by 2 to 3 cents on a settlement basis..
For now, we will have to wait and see how Corn and Wheat hold up with any potential fund selling, which all in all did not show up yesterday… Perhaps another case of buy the rumor/ fade the fact… If the whole world is anticipating a move, that’s a sure sign it won’t materialize in the way the herd imagined it…
Good Trading