Every 24 hours Europe goes from broken and irreparable to fixed and sunny..Its like watching a manic depressive who’s decided to stop taking their medication.
What to watch today? Gold returns to that trend line… 1750 today is the intersection point. Your risk is the old low at 1681. If you spec from the long side, expect the trade to dance around that trend line. Just make sure you have a stop loaded up in case we have another flush down. This is a dicey trade, but watch that trend line.
With Europe on a see saw of bullish/bearish sentiment, no one knows what the next step will be.
The Dow futures are currently up 114 points after finding support overnight at 11,661
11,900 is the 1/2 way point from the recent 658pt trading range between the October high tick as 12,228 and the November 1st low at 10,570. If we continue to trade this sideways range, watch the following levels: 11,725 and 11,900. 11,900 is the mid point of this trading range. At that point, 11,900… the longs and the shorts are taking heat. I would have an upside target of 11,975- 12,000. Sell that level.
That is all for the Dow futures.
As for the grains, I have a feeling we are going to chopp sideways for the next 6 weeks. There is no real news out there yet. The corn yield has been lowered, the carry increased. A giant bowl of neutral. Wait patiently for the break out.
CER