Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Commodity Currents: Wrong Way Wednesday.

Stocks headed in the other direction as seller didn't wait for a test of 1336.50 in the S&P500 before sending prices lower taking out more support in the process with 1275 as near term support however Nasdaq 100 held its support level of 2527.00 for now with more support at lower prices which should stem any aggressive selling. 10yr Treasuries zoomed to a new contract high once again showing that no high is too high, sooner or later this will be a sell as today's action looks like a blow off top but so far no sigh of a reversal either with near-term support seen at 133-26. The Dollar traded over 83.00 getting closer to its near-term target of 84.00 leaving behind its 82.08 initial support should it ever pull back. Crude sold off again as 91.01 resistance capped gains and longs were no where to be seen at 90.00 as sellers sent prices to the lows now under 87.50 within reach of 85.00 the next likely support area whereas Natural gas still experiencing profit-taking with selling momentum slowing as prices approached chart based support 2.357 which is about 2 cents under the 61.8% retrenchment of the move from the April lows as well as prices closing over 2.444 another positive. What a difference a day makes in the metals with Gold initially lower from yesterday's outside day then reversing higher from 1534.10 as buyers supported but was unable to trade over 1571 with Silver trading in a similar fashion reversing higher but turned away from 28.110 although that could change with follow through buying. Moderate losses in the grains with Wheat falling further with 640 possibly supporting playing catch up to Corn which is trading around 560 remaining within reach of 550 as Soybeans fall further away from 1400 as confined by 1388 near-term resistance while support seen at 1350. Coffee ground lower with more selling interest as prices probed the lows as it appears the next major move is likely lower although prices managed to close off the worse levels while inside day for Sugar as another upside attempt was refuted sending prices back to the 19.50 area. Cocoa back peddled challenging the April lows before bouncing somewhat but overall direction looks lower if prices close under 2,050 decisively. Orange juice consolidates after holding 108.00 on a downside test setting the stage for a challenge of 140.00 while Cotton heads in the other direction on a spike in volume threatening another move lower to 68.00.


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