FINANCIALS
September Mini S&P
(unch) Prices continue trading within the parameters of the regression channel. They appear to be headed for the overhead MOB but..are currently fighting to move above the highs made last Spring. Prices are currently overextended so a downward reaction is called for; possibly to the 1400 Gann line. Hang on to longs and let the chart take you out on a stop based on a close below 1390.
NASDAQ 100
This index has blazed through the 2710 Gann line but is now facing a tougher adversary…the top of the regression channel. It doesnt stop there. At the top of the channel lies a MOB and above that MOB, another one. The moment of danger for longs is a close below 2725. I urge a close eye on this index because it is currently overextended..
CURRENCIES
US Dollar Index
(unch) It looks like the dollar index is being dumped. The downmove was strong enough to break and close below the critical Gann level of 81.45. I would not get to jubilant if short because this index will most likely look for refuge at the bottom of the regression channel where they will meet a double MOB. Traders are urged to pay close attention to short positions.
September Euro
While I expected prices to retreat from the top of the channel, prices decided they wanted to break out to the upside. In the process they took out a small MOB lying in their way. I see absolutely nothing to keep them from reaching the critical Gann level at 1.2650 which lies marginally above current levels. Should prices establish above 1.2650, we will be looking at the MOBs overhead. Until prices break out above that number, the entire rally from the July low may be viewed as an upward correction. Caution.
J Yen
No positions.
September B Pound
This currency broke out to the upside. I would probe the long side risking a close below 1.5775 (1.5800 was a typo).
September Cdn Dollar
(unch) Let's try the short side of the Canadian dollar and risk a close above 1.0175
September Aussie Dollar
(unch) Continue to protect short positions against a close above 1.0535.
ENERGY
October* Natural Gas
On this decline prices were expected to move down to 2.66 but fell short by a few cents. We may yet see that level satisfied before prices turn up again. Should prices decline to that level I would be a buyer for a quick turn as I expect resistance at about 2.91. ISAAC may raise that number somewhat but prices should not be able to sustain.
November Natural Gas
October Crude Oil
(unch) Prices soared through the MOB and still show no sign of tiring. They are exhibiting enough momentum to move through the top of the channel to the Gann line at 101.60. Other than support at 95.00 or so, we could see a test of the bottom of the channel in the low 90s
November Crude Oil
Metals
December* Gold
The close above 1639 earned us long positions in this contract. Protect those longs against a close below 1625. Prices can reach 1720 with not too much trouble. Support at 1640.
September/December Silver
Switch long positions September positions to the December contract and risk a closed below 29.55. We should be able to bring the stop closer to prices in a day or so.
September Copper
Probe the long side of this contract risking a close below 3.4580.
Agriculturals
December Corn
Stopped out of long positions.
November Soybeans: Reinstate long positions (yes, I am serious). Risk a close below 1700.
December Wheat.
Stopped out of the long probe.
Meats
October F Cattle*
No positions.
August L Cattle
No positions.
Softs
December* Cocoa:
Let us probe the short side protecting those positions against a close above the critical Gann line at 2515.
October Sugar Lower protective stop to a close above 20.30.
