Wow, turned on the screen this morning and every commodity I follow and both stock indexes are sharply higher..
The Dow is above 1100 currently, the SPZ is at 1080, hugging that Trend Line I wrote about yesterday…
Jan beans had a 20 cent rally last night, trading to a low at 951 with a high at 971…I would look for that trading range to be explored today…We may see a short covering rally after so much selling went on last week, however, it still looks like the bears are in control and eventually want to go test the 900 level some time in the next few weeks. Of course, given the right circumstances, we could do it in one afternoon, with the volatility the grains have.
Crude oil is higher trading around 79 and change. I think the 82 level will remain as resistance, and if we can get below the 77 level, then 74 to 72 would be good support.
In the metals, I would not fade this rally up. Gold looks like its on a mission, and until the charts get less bullish, I would be careful trying to fade that trend.
We are now trading comfortably above 1100, with pundits and main street looking at 1,500…. 2,000 and even 3,000 as targets. This sea change in public opinion, however, is fickle… When and if it starts melting down it could be funky… In the mean time, 1,000 is the support to look at, and I imagine there will be buy orders down there to support that level, simply because its a nice round number which attracts trade positions…
Good Trading
