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Commodity Currents: Back To Work.

Markets didn't waste any time from the holiday weekend with some hitting the ground running and others falling flat. The S&P500 was greeted by sellers on the open forming a bearish reversal as new highs were rejected more evidence of market fatigue but still needs to close under 1,349 to change the short term positive outlook. Similar action in the tech heavy Nasdaq 100 being rejected from 2,600 resistance again but supported at its 9day average 2569.11 closing near the unchanged mark keeping alive its upside potential. Treasuries slipped taking yields on the ten year to 2.100 again but pulled back as buyers returned after 130-17 held for now. Bonds fared about the same bouncing a little from another retest of 141-00 as yields push higher to 3.200, should higher yields prevail, next level in the long bond to watch is 140-00 and 130-00 in Notes. Both securities are under their 50day averages with bonds leading the way lower as funds start to flow back into equities but how long this continues remains to be seen. The dollar fell flat as well although bounced off 79.00 again but not making much upside either having a lot of overhead resistance to clear from 79.25 to 79.65 before regaining the upside. Gold finally made up its mind charging higher on a huge spike in volume through 1,750.00 and if it can exceed 1765.90 might be looking at 1,800 in the foreseeable future. Sliver closed in on 35.000 resistance after chopping around like gold and a close over 35.668 could set the stage for a return to 40.000. Natural gas bounced off its 20day average which is encouraging because last time it closed over the 20day couldn't follow through and pulled back instead. If it can close over 2.810 that could return gas to 3.000. Crude oil heated up as well with buyers pushing oil to a four month high after taking out 104.00 and looks like there is still more to this move. Mixed showing in the grains with corn giving up prior session gains testing support of 632 possibly looking for 620 and wheat reversing lower as well under continued selling testing recent lows of 628 with a retest of 620 looking more likely while soybeans continued higher inching closer to 1300 supported by meal topping significant resistance 330.00 now challenging 336.80, and bean oil looking for 55.00 after exceeding 54.00. Sugar had a sweet gain of 2.94% after exceeding 24.00 cents in heavy volume what you want to see on a breakout as it suggests higher price potential especially if sugar can exceed 25.00 cents. Cocoa surged as well up 3.37% taking out resistance of 2,416 possibly looking for 2,500 where it was turned back last month. Not to be outdone, coffee buyers woke up supporting 200.00 although coffee needs a close over 210.00 to change the short term negative outlook. Cotton made a half-hearted attempted to rally but sellers are in still in control turning prices away from 94.00 although ending the session with a small gain of 0.35%.


This post is intended for informational purposely only. All investors are expected to exercise complete due diligence with the selection of investments tailored to their individual investment situation. This post is to provide insight into the market's behavior to assist investors in their investment decision making.

Disclosure: I am long UNG.