Chris Bersaw's  Instablog

Stocks were higher today on likely short-covering from last session's sell off when prices held support during the night around 1338 although as long as prices remain under 1378 with the corresponding level for the E-mini Nasdaq 100 is 2690, short term direction is still lower. New contract highs in 10yr Treasuries with sellers more then willing to sell into strength resulting in a classic reversal as buyers couldn't push prices higher and if this continues then it could be a great place to sell as long as yields hold support at 1.800. Inside day for Gold going nowhere fast as recent price action has been a combination of light buying, short covering, and profit-taking with support seen around 1620 but gains still capped at 1670 with Silver continuing its slow churn lower but supported by bargain hunting in Copper as prices approaches 3.6500 with next upside target being a close over 3.7755. Follow through selling in Crude before prices recovered on likely short covering from short-term oversold conditions but there could be more downside if sellers force a close under 95.00 likely taking prices to 90.00 with nearby resistance seen at 100.00. Natural gas which had been advancing on short-covering floated higher on more of the same but prices were capped by 2.350 while still holding 2.250 for now. New contract lows were rejected in Hogs although no sigh of a bottom either so can expect more of the same while Cattle moves higher now supported at 114.65 with an upside objective of 118.00. Directionless trade in the grains with Corn closing over 618 trying to move higher, Wheat initially testing 600 support before recovering as buyers supported with next upside objective of 630 while in Soybeans buyers checked declines to get prices back over 1484 as sellers try to force a close under 1458 to take prices to 1400. Coffee reclaimed 175.00 but that's about all it could do as buyers remain elusive but sellers not willing to press prices lower opting to wait to sell at higher prices namely 177.00. Sugar advanced on more short covering closing over 21.00 which is positive but without new buying limited upside seen. Outside day in Cocoa as prices held 2,250 to close over 2,350 once again back over the 100dma and a close over 2378 could mean a trade north of 2500. New contract lows in Cotton after buyers gave up from repeated failures to advance beyond 90.00.

DISCLAIMER: The risk of loss trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. Trading futures without protective stops or options is not recommended.