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Commodity Currents: Wild Wednesday.

Two sided trade in the S&P500 with buyers supporting when prices approached 1290 support which caused shorts to cover to end the session little changed, ditto for the Nasdaq 100 as buyers waited at 2500 to chase prices higher and if this trading action continues could be a sign of a pending oversold bounce especially if the indices can close over 1315 and 2540 respectively. 10yr treasuries closed off the best levels but still remain within reach of new contract highs supported at 133-16 with the Dollar closing over 82.000 and if can hold 82.09 can build on gains and target 84.00. Gold made another run at the Dec. lows but buyers were waiting again as prices closed well off the worse levels while falling short of 1570 for now it looks like downside might be limited from here whereas Silver held 27.000 keeping its upside target of 28.16 within reach. Crude slips again trading under 90.00 with buyers supporting the low which could be a sign of an impending bounce as prices approach support and Natural gas continues its upside ways as buyers supporting the low keeping 2.800 within reach. Buyers were waiting when Hogs traded 84.25 indicating a possible bottom if this level holds with near-term resistance seen at 86.85. Soybean meal bounced off 400.00 support checking losses with upside resistance seen at 420 while Soybeans continued lower heading for 1342 its near term target with resistance seen at 1403. Corn ended the session higher but unable to close over 608 still looking lower long term and Wheat fell back under its 200dma but should be supported around 660. More selling in the softs takes Coffee and Sugar to new contract lows with sellers finally having their way as buyers give up, Cocoa dropped again heading toward 2,050 where buyers had supported in the past although the outlook isn't encouraging. Orange Juice was turned away from 110.00 although buyers did support around 100.00 again so that could be something to watch and Cotton continues to plumb new contract lows likely heading for 60.00 unless someone decides to buy and one day will be a great buy but probably not today.


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