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Commodity Currents: Testy Tuesday.

Inside day in the S&P500 advancing on mostly short-covering frustrating bears as prices found support at 1306 managing to close over 1313.75 while remaining under 1318.50 near term resistance with a similar performance with Nasdaq 100 as prices closed back over 2539.30 with 2569.40 seen as near term resistance. 10yr Treasuries tried to advance but were contained by 133-20 although still not able to sell off significantly either as buyers wait at 133-00 keeping losses in check. The Dollar tried but was unable to exceed 82.67 closing on the session lows as sellers start to show more interest and if they can get a close under 82.22 could see a return to 81.500 which will be beneficial to the crosses with possible exception of the Yen turned away from 1.2636. Crude continues to consolidate over 78.00 indicating a pause in the selling setting up for a possible bounce with 81.61 the next upside objective whereas short covering and some buying continues to propel August Natural gas higher toward 2.856 so have to see what happens if there is enough momentum to push higher or will prices fall back toward 2.600. Mirror image reversal in Gold giving back yesterday's short-covered inspired gains as 1600 resistance looms with 1560 seen as support as prices remain largely range bound with an inside day in Silver as prices climbed to remain over 27.000 with resistance still seen at 28.000. Indecision day in August Hogs as the market consolidates under 89.00 and if this area holds could be a buy especially if buyers continue to support at 88.00 whereas Cattle gets closer to my target and support area of 115.35 although prices still remain in a downtrend thus far no sign of a reversal. Corn continues to pop as funds chase prices higher slicing through any resistance encountered thus far like it wasn't there with 625 the next level seen following Wheat which is also advancing exceeding 737 both of which playing catch up to Soybeans which actually reversed lower after touching 1480 although remaining within reach of new highs at 1492 with Oats making up for lost time approaching 345 but closed well off the highs although managed to stay over the 200dma at 326. Coffee woke up exceeding 160.00 now looking for 170.00 as buyers show increasing interest with support at 157.69 in case prices should pull back and Sugar retakes 19.96 and if can build on gains by exceeding 20.22 could try for 20.68. Cocoa has a change of heart after holding 2,100 now moving higher to challenge 2,168 with 2,178 the next hurdle before making another upside attempt. Orange Juice headed in the other direction falling under 113.21 unable to make any progress to the positive and Cotton experienced the same fate unable to work through 70.00 falling back to support at 68.00 as 66.00 remains within reach.


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. Past performance is not indicative of future results