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Chris Bersaw
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Spent my entire career on the trading floor of major futures exchange experiencing price discovery up close and quite personal and know first hand just how irrational these markets can be. Initially in futures, branched into the world of options trading learning various options strategies that... More
  • Commodity Currents: Turn Around Thursday. 0 comments
    May 24, 2012 9:47 PM

    Stocks continue to keep both buyers and sellers off balance by opening on the high only to sell off and sit on support almost the entire session threatening to make new lows only to recover in the final thirty minutes of trading ending back almost where they began the session but this time closing over resistance at 1315 in the S&P500 while Nasdaq 100 couldn't quite get the job done closing just under 2539.00 although tomorrow is another day. 10yr Treasuries reversed lower now under 133-17 and if this support becomes resistance could be a great sale as traders who purchased at this price will be looking to sell to get out if they get the chance with next downside objective is 133.00. The Dollar continues to build on gains with 84.00 next although it remains to be seen if it can get there. Gold tried but was unable to close over 1566 although managed a gain for the session, action looks more like short-covering and still looking lower over the near term. Silver fared better able to close over 28.07 resistance but with conviction lacking faces uphill struggle with resistance seen at 29.20. Inside day in Crude as sellers lose interest and buyers remain hesitant with an near term objective of 92.54 whereas short-covering continues to fuel Natural gas's upside but that will only last so long before more new buying is needed to continue gains by challenging 2.800 with support seen at 2.621. Corn got clobbered dropping more then 3% with further downside possible after another failure to trade over 610 with Wheat unable to make any upside although still sitting over support at 657. Soybeans tried to move higher but couldn't advance beyond 1383 whereas Meal did build on gains but stalled at 414.50 with more resistance seen at 420.00. Inside day in Coffee as the market figures out where to go, to 160.00 or back to 175.00 while Sugar ponders its direction as it consolidates with buyers showing little interest, Cocoa was marginally lower with 2,050 within reach for motivated sellers as buyers sit on the sidelines and Orange Juice found new signs of life as buyers supported challenging resistance at 108.30 to close at 109.30 if can build on these gains can see prices trade to 120.00. Cotton reversed direction with next upside hurdle seen at 76.35 as short covered with some light buying.

    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

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