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Commodity Currents: Wide Ranging Wednesday.

Nothing like a rumor of more Fed stimulus by their June 19-20th FOMC meeting to goose the automated markets into a little short covering but it worked as the S&P500 was pretty much glued to the highs reaching 1314.75 on respectable volume too so next stop could be 1353.25 if the market can build on these gains whereas the Nasdaq 100 charged higher clearing 2536.60 putting it within reach of 2612.50. We have seen such a bounce in April only to fall in May so too soon to tell if this is a break out or fake out. 10yr Treasuries fell through 133-17 with authority as sellers have their way but will this selling last? Near term support seen at 132-28 whereas 133-17 is now potential resistance. The Dollar fell now back under 82.76 again looking for 82.00 but don't think that level will hold for long which will give a boost to the crosses with just about all benefiting with the Yen being the exception looking like its could visit 1.2500 if buyers don't support it at 1.2605. Crude drove higher but reversed direction after inching closer to 87.02 perhaps to make another upside attempt whereas Natural gas advanced but ran into resistance at 2.475 while remains supported over 2.424 for now keeping alive upside possibilities. Gold advanced but couldn't make it past 1640 before falling back now have to see if it can hold 1624.80 whereas Silver has no such problem now approaching 30.115 with more resistance ahead. Corn was on the move challenging 587 with buyers in charge with support seen 568 while Wheat still remains between 611 and 629 as the market decides on what to do as Soybeans rallied through 1350 but stalled at 1387 with support at 1365. Coffee tried to rally but sellers had other ideas keeping prices between 155.00 and 159.00 in another lackluster session but Sugar really sweetened longs position gaining more then 4% falling shy of 20.00 but is buyable if stays over 19.40. Cocoa built on gains clearing 2,193 but stopped at 2,221 the lower end of a congestion area with further gains more difficult but an indecision day in Orange Juice as the market ponders its recent breakout and Cotton flips higher but looks more like short-covering heading for 70.75.


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