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Commodity Currents: Teasing Tuesday.

Two sided trade in the S&P500 supported by 1340.00 but capped by 1366.25 with the tech heavy Nasdaq 100 trading between 2641 and 2583 but with the overall direction still lower despite the increasing volatility. Despite the reversal in 10yr Treasuries yesterday, new contract highs printed today and like last sessions sellers sold into strength but this time not taking prices as low as before. Inside day for Crude as buyers supported on the low with prices struggling to stay over the 200dma of 97.39 with 100.00 next upside objective for bulls and possible stop running and/or new buying in Natural Gas taking prices up over 4.5% with next upside level to watch is 2.531. Metals softened under profit taking with Gold dropping below 1620 a level which buyers had supported before but not now almost hitting my target 1593 target, LOD was 1595.50. Silver continued its churn lower heading toward 29.000 whereas Copper reversed from 3.7750 heading back toward 3.6450. Indecision day in Hogs as the market ponders recent selling whereas Cattle still remains over 114.75 encouraging for further upside potential namely to 118.00. Soybeans fell through 1458 like it wasn't there now officially in correction mode after its non stop ascent with 1400 the first downside target however Soybean meal still needs to close under 413.10 for it to officially correct then have to see what Corn and Wheat do if they can hold gains or will they resume their sell off with downside levels to watch 620 and 600 respectively. Coffee attempted to move higher but turned away from 177.00 again falling back to 175.00 to try again, Sugar soured turned away from 21.00 dropping to new contract lows as sellers still control the trend but Cocoa held the 100dma again despite closing slightly lower keeping 2,376 within reach whereas Orange juice printed new contract lows trending lower although some buying lifted prices off the worse levels. Cotton tried to bounce but was short-lived as sellers sold into the move sending prices back to 86.00.


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.