FINANCIALS
March mini S&P As hard as it tried, this index is having a hard time holding above 1415. upon clearing that level, it would set the MOB just below 1450 as the next target then the one above 1475 as the second target. The trend remains technically down since the mid November low but can reverse quickly with some upward momentum. Traders who wish to short this index must risk a close or two above 1415/1420. With the smell of Christmas trees in the air, I wonder if we will see much action in this index…unless Washington politics play a role in it before the holiday.
NASDAQ 100
It appears that 2710 is to this index what 1415 is to the mini S&P above.
US Dollar Index
The low posted this week took this index to an overextended condition. That makes it ripe for a reaction rally…sell that rally. That low also turned the trend to technically down..
March Euro True to my projection, this currency certainly went overextended and that make it vulnerable to a downward reaction…reaction is the key word here. Traders may buy this currency when risk of a close or two below 1.2840 can be readily handled. The first overhead MOB at 1.3250 is the first upside target…then the one at 1.3400.
J Yen
(unch) I am looking to sell this contract on a rally.; Since it is overextended presently I do not want to risk selling in the hole. Another reason is the fact that prices should find support at the bottom of the channel.
March B Pound
Go long this contract on a close above 1.6045. Protect against a close below 1.6010.
March Cdn Dollar*
(unch) Go long this contract on a close above 1.0085.
March Aussie Dollar
No positions
ENERGY
January Natural Gas
Verging on the overextended side, prices staged a rally that even had me fooled. As I said in my last comment, it is better to allow prices to stabilize before committing to this market. It seems that 3.47 is still in the running as it the MOB at 3.30. Probing the long side against the bottom or the channel may not be such a bad idea.
February Natural Gas As with the January contract, I would wait for prices to stabilize but probing the long side against the bottom of the channel may not be such a bad idea.
January Crude Oil It appears to me that this contract cannot go anywhere until it can stabilize above 91.40. In the meantime the direction will be sideways to down.
February Crude Oil
Covering shorts may have been a hasty decision even if it was dictated by technical factors. This contract displays no sign of moving higher except for reaction rallies which are temporary rallies. We may soon be seeing prices in the vicinity of the MOBs. …and that may not be the bottom.
Metals
February Gold This contract can still rally but should not make much headway above 1718. No positions.
March Silver
No positions.
March Copper
Raise protective stop for long positions to a close below 3.6090.
Agriculturals
March Corn
Protect short positions against a close above 762.
March Soybeans:
Probe the long side risking a close below 1430
March Wheat
No positions..
Meats
Janurary F Cattle*
Probe the long side risking a close below 147.90
February L Cattle
No positions..
February L Hogs
Stopped out of long positions. Thank God for stops.
Softs
March Cocoa:
No positions..
March Coffee
Probe the long side of this contract risking a close below 149.00.
March Sugar
Leave the protective stop close only at 20.10 to protect short positions.
