Blog Archive

I listened yesterday to the radio after the close. By accident I happened to listen to the nightly business report and just noticed how inherently bearish the reporting can be. Yesterday the Dow “had a rough day” closing over 100 points lower. We have rallied 4000 points off of the most frightening down move we’ve seen since 1987 or 1932, yet a 100 point down move when the index is between 10000 and 10300 is reported as “a gigantic down day”. Seems no one in the reporting business has a concept for percentage moves anymore.
Also, a cursory observation of trading ranges in the stock […]

Both the DJZ and SPZ stock indexes rallied back after sharply lower moves. At one point the Dow Futures were close to 150 points lower but displayed a nice 100 point comeback to end the day lower but not nearly as low as it had looked.
ON the Charts, there is support in the DJZ at 10,111, 10,011 and 9912, if the bears can sink their teeth into this rally and really give the bulls some pain.
In the SPZ, we have a Nov 16 high at 1112.25, and a double bottom on the daily charts at 1026 on Nov 2 and Nov 3. Looking […]

Its 1243 CST and this is my afternoon update.

We have seen bounces back from our earlier lows in the grains as well as the stock indexes.
Currently, Jan Beans has a day session low at 1024, and a day session high so far at 1048 1/2. An impressive rally off of overnight weakness where we had a low print at 1016. 32 cent range equals volatility in any one’s book. The high so far is 1/2 cent away from yesterday’s high at 1049. No doubt there will be some activity if we can pop above the strike price at 1050. Above 1050 there is […]

A quick update about the importance of the 50 percent retracement. Its simple, easy to remember and it works on long term moves as well as intra-day moves. It is a magnet, and serves as a fulcrum, or the balance in-between the see saw of the market.
Overnight, we had a high in SF at 1034 and a low at 1016. We opened at the half way mark at 1024, tested in twice, and it served as the jumping off point for a nice ten cent move higher. Conversely, if it hadn’t held, it would have been a good spot to flip short, if we […]

It seems that we have some profit taking across the board. After ten to twelve straight days of rally, we were overdue for a pullback. Its a natural ebb and flow, and for now,it looks like it should be a typical market re-trenching. Not so much fun if you just got long and are looking at losses.. Short term or not, losses are no fun, and not why we are trading.
I did some basic technical analysis, my favorite type.
Overnight and so far today we have had lower trade across the indexes as well as the grains.
Support levels should be at the […]

It seems that we have some profit taking across the board. After ten to twelve straight days of rally, we were overdue for a pullback. Its a natural ebb and flow, and for now,it looks like it should be a typical market re-trenching. Not so much fun if you just got long and are looking at losses.. Short term or not, losses are no fun, and not why we are trading.
I did some basic technical analysis, my favorite type.
Overnight and so far today we have had lower trade across the indexes as well as the grains.
Support levels should be at the […]

The Grains could not hold on to early gains. The Wheat finally ran out of buyers at a new high of 583 1/2, then promptly melted 20 cents to settle on its low at 565 1/2.
Jan Beans led the way this morning, posting a new 3 month high at 1049.. It couldn’t get the 1050 print, and then had a gradual melt through the afternoon down to the 1025 level, bounced ten cents higher and then chopped through that ten cent range in the afternoon to finally settle -1/2 cent on the day at 1029.. A definite bearish hook reversal, where we had a […]

This morning we have new highs in the juggernaut that is the metal indexes. Gold at 1,153.40 and Silver at 18.8550… Enough to make Yukon Cornelius from Rudolf The Red Nosed Reindeer start singing that song, “Silver and Gold, Silver and Gold”.
I think we will see the indexes continue to drift higher, not necessarily sky rocket higher, more of this drift higher. Be ware of the downdrafts in the gold contract immediately in the face of new highs and the round numbers, ie 1,160, 1,175, etc.
I also imagine there will be some sell pressure when Silver pops up to 19 bucks the first […]

Overnight Asia trading pushed gold to a new high at 1,149.60 and silver to 18.8850. Higher prices beget higher prices.
We had more buying overnight in Soybeans, as SF jumped 15 cents to settle at 1045. Charts have resistance at the 1050 and 1066 level. Impressive creeping rally, with few pullback opportunities. Just a veritable freight train higher. Corn and Wheat less sympathetic, only gainin 3 and 2 cents, respectively to settle at 405 1/2 and 577 1/4.

Stock indexes pushed to a new high, but just broke on the early 730 number.

Good Trading

Gold and Silver have bounced to new highs so far in overnight trading. Gold has a new high print at 1,144.70 and Silver has a new high print at 18.51. I imagine European and Asian Traders will take this bullishness and run with it overnight, with resistance in these metals spotty at best. I would also look for sudden down drafts if any bears can get a handle on things. It wouldn’t be surprising to see ten or even fifteen dollar down drafts in the face of new highs. That has been the pattern over the past 5 weeks with each new record high.

Looking […]