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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: One Sided Thursday.  0 comments
    Jul 12, 2012 9:05 PM

    Looked like another weak session in equities but another challenge of 1320 support held giving a lift to the S&P500 to close back over 1325.85 although the short-term outlook is still lower while the Nasdaq 100 fell under 2550 leading the equities lower as next support is 2,500. 10yr treasuries continue to resist selling off but not doing much on the upside either keeping 135-00 within sight and the Dollar advanced almost trading to 84.000 before pulling back, if it can get a close over 84.00 things will get interesting as 83.00 seen as support should prices be turned away. Crude headed higher trading within a two dollar range for the forth session with support seen at 83.19 and resistance at 86.00 but Natural gas has no such inclination staying range bound as prices held 2.757 on a downside test and then headed higher to close over 2.852 as the market looks like a trade to challenge 3.085 before it pulls back. Gold continues lower although buyers are not giving up but prices still remain in a steady downtrend heading toward 1550.70 while Silver managed to eek out a small gain while remaining capped by 27.330 and 27.480 keeping its downtrend intact although am seeing buying interest pick up as prices decline so have to watch that. Hogs headed in the other direction today glued to the high most of the session but unable to stay over 92.425 keeping the downtrend in place with 90.00 still possible while Cattle was slaughtered after prices fell under 118.00 a key level as 115.00 remains next significant support. Inside day in Corn which looks more like short-covering after yesterday's key reversal suggesting limited upside from these levels as Wheat also remains elevated although lagging the move so there still could be upside with support at 820 and an inside day for Soybeans remaining not to far from 1512 support but not out of the question to see a pullback to 1450. Oats challenged 360 and it held keeping sellers at bay but a drop of 20 cents could be welcome to play a bounce as there is significant support at 330. Coffee ground lower but 180.00 contained prices as the market consolidates after recent gains to challenge 196.00 again whereas Sugar couldn't advance beyond 23.00 pulling back as well supported by 22.00 and closed over 22.42 while overbought buyers are still in control. Cocoa gapped under the 100dma as well as other support as prices drop on a spike in volume could be possible buyer fatigue after repeated attempts on 2,350 were turned away although prices ended at a 61.8% retrenchment from the 7/3 high so that might entice buyers else might see a return to 2078. Orange Juice churns lower but not without a fight as buyers support at 120.00 while Cotton finally made up its mind falling through 70.63 as 68.00 remains within reach of sellers as buyers bail out.

    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. Past performance is not necessarily indicative of future results

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