FINANCIALS
September Mini S&P
(unch) I believe that prices will succeed in an upside breakout of that downtrend line. However they will run into a Gann line at 1400. The odds favor a setback from that level for several reasons and the main one is that it is a psychological round number and prices should find themselves overextended when they get up there. All in all, the technical picture now looks bright for this index.
NASDAQ 100
According to Elliott, a five wave move cannot be a correction but rather only one leg of a correction. Therefore the downmove from the high may be the A of a large ABC. Having said that, we can still see a very tradable B wave up. At the moment, support should appear at 2535. The close on Friday may just cause enough weakness to give us 2535.
CURRENCIES
US Dollar Index
(unch) This index advanced up to the MOB and appears to be turning down. We must realize that the trend is still up. Looking at the bigger picture, it appears that besides the current resistance at the MOB, more lies above that MOB at around 85.00 to 85.50.
September Euro
Last week prices close on their worse levels. That should warn longs that there is more selling to come this coming week. That should put level below the MOB. This currency is on the verge of posting new lows for this move. We may see a reaction rally first.
J Yen
(unch) Let us probe the long side of this contract risking a close below 1.260.
September B Pound
(unch) Go long this contract. The risk is a close below 1.5600
September Cdn Dollar
(unch) The risk for long positions is a close below 98.62
September Aussie Dollar
Go long this currency risking a close below 1.0275.
ENERGY
September Natural Gas
We needed support around 2.68 on this contract if the technical picture was to get rosier. Well prices dipped to 2.71 and that was close enough. Prices should now head for the 3.36 critical Gann line. There they should be over extended and yield a downward reaction
October* Natural Gas
September Crude Oil
The swing count measures in at 96.00 while the critical Gann line comes in at 92.60. The momentum seems to be in the side of the bulls but prices are verging on overextended so we may witness a downward reaction before long. I would be inclined to buy such a reaction. One possibility is 105.00
October Crude Oil
The swing count measures in at 96.00 while the critical Gann line comes in at 92.60. The momentum seems to be in the side of the bulls but prices are verging on overextended so we may witness a downward reaction before long. I would be inclined to buy such a reaction. One possibility is 105.00
METALS
August* Gold
No positions. Not exciting at all. Prices merely trending down and looking heavy.
SeptemberSilver
No positions. This contract may find support at the bottom of the Gann square at 26.35. Traders needing excitement for their adrenalin might consider the long side risking a close below 26.70
September Copper
Reverse short positions and risk the longs against a close below 3.45.
AGRICULURALS
December Corn
(unch) Move protective stop to a close below 753.0.
November Soybeans:
(unch) Raise the protective stop to a close below 1620.0
December Wheat.
(unch) Move stop up to a close below 820.0.
MEATS
August F Cattle
Reinstate short positions risk a close above 139.20
August L Cattle
Go long on a close above 118.20. Risk a close below 117.85..
SOFTS
September Cocoa:
Go long this contract on a close above 2295 or go short on close below 2200.
September Coffee:
Bring stop to a close below 179.00
October Sugar
(unch) Go long this contract risking a close below 23.00.
