New Highs Followed by Profit Taking in Gold and Stocks

The Dow futures finally got the 10505 print out. When we couldn’t explode higher above that round number, that was the first sign that the rally was a head-fake. In the SPZ contract, we printed a high at 1115.50. We then promptly broke 11 handles back down to the 1104 level. The DJZ also melted almost a hundred points lower, as the bears took profits after selling into the new highs.

In the metals, the day is still young, and while there has been some profit taking, they remain higher on the day. Gold spiked to a high of 1217.30, and then moved back to […]

Gold and Silver Highs, Quiet Range Trade Elsewhere

Gold posted a high at 1217.30 and Silver left a high print at 19355. Other than that, the markets were a sideways chop last night. Jan Beans traded through a ten cent range between 1053 and 1063. Wheat and Corn had smaller ranges but basically, uneventful.
Continue to watch the US Dollar index and the Crude for some hint today of where we may be trading. Crude is currently down slightly trading at 7786. For now it looks like the 73 to 78 dollar range is our trade parameter for Crude. A break out above or below that range would be worth watching.
Today […]

Gold and Silver Trek Higher Overnight

US Stock indexes remain sleepy at 1230CST. I always look at markets before I go to bed, and tonight, the only stand out feature is the metals. Gold and Silver continue to rally.
Gold has posted a new high at 1215.4 and ditto for Silver at 19.355. While we are in virgin territory for the metals, the pattern of 15 to 25 dollar jumps in the gold, with much smaller incremental moves in the Silver point towards this trend marching on.
When will it be near to an end? Most likely when Time or Newsweek magazine has a front cover story about the metals. […]

Use of Stops in the age of computer worms

You have to use stops to limit your risk. However, beware there are trading robot-worms, what ever you want to call it, which seek out stops. I believe they take a trading range, and then calculate where the average trader is either long from or short from. There are people who have asserted that there are artificial intelligence programs which mimic human behaviour, and then the computers are programmed to go to those stop points. The points are arbitrary, and most likely the result of a complex logarithm, but I would have to argue that they are there, lurking in the shadows.
I cant’ […]

Gold and Silver Post New All Time Highs and High Settlements

Gold traded to a record high today at 1202.7 and a record high settlement at 1196.50

Ditto for silver, as we had a high print at 1926.0 and a record high settlement at 1910.

The Stock Indexes posted new 9-month highs, as the general feeling was one of continued short covering after last Thursday night’s panic sell-off.
SPZ was unable to get the 1112.00 print out, posting its high at 1111.75. DJZ also couldn’t quite get the 10500 print out, instead posting a high 6 ticks below it at 10494. SPZ settled at a new 9 month high settlement at 1108.75, 3 handles off the […]

Key Reversals in the Grains

All of the grains made new highs today, and the in the last 5 minutes of trading gave up all of the earlier gains and settled lower on the day.
January soybeans traded to a high at 1078 1/2 and broke 20 cents to finally settle down 2 cents at 1058. December corn posted a high at 406 1/4 and then broke 9 cents late in the day to settle down 5 cents at 397 1/2. Finally, the December wheat potsed a high at 576 1/4 then broke 15 cents to settle down 5 cents on the day at 562 1/2. All together, a bearish […]

Dow Futures Close in on 10,500, Gold Breaks 1200 and Silver Breaks 19 Dollars an ounce

Today the computers say “Buy, Buy Buy” Get in there and turn those machines back on. Where’s Beeks”. Gold breaches 1200 an ounce, Silver Breaches 19 dollar an ounce.

All the traders who sold into a thin Thanksgiving market on the Dubai news, while initially re-warded, have now had their heads handed to them if they stayed short too long.

Stock indexes continue their rally. Dow futures are within 25 points of the 10,500 level. If we breach that level, there should be a flurry of trading for a brief while. We had positive economic numbers in US housing,as existing home sales have risen […]

Gold misses 1200 by One Dollar (So Far)

Overnight, Asian and European traders apparently reversed out of any short positions they still held, after betting on new lows in the immediate flurry of trade last Thursday night. We came within 1 dollar of a 1200 print so far in the Gold, with a high a 1,199.00. Silver is within 13 pips of a 19 dollar an ounce print, with a high so far at 18.87.
Crude oil has rallied as well, with a high at 7877. Perhaps we will see that push in Oil back towards 80 dollars, especially if the dollar weakens and gold is able to explore what lies above 1200 […]

Support Resistance Areas and Some interesting Chart Pictures

Tonight I thought I’d do a re-cap of technical support/resistance areas I like in the Grain Complex. Specifically soy beans, corn and wheat futures.
You should get some good support/resistance numbers to consider, as well as some interesting chart formations I will describe.

First, every one’s favorite January Soybean Futures. On a longer term chart, SF has been in a two dollar sideways trade for the past 6 months.

The highs at 1104 were posted in June 09, we have bounced off of the low range at 891three separate times since July 09, and most recently the October low at 885 1/2. With Today’s […]