MARKET UPDATE
JUDY CRAWFORD
(TRADES FOR FRIDAY, AUGUST 27, 2010)
888-301-8120
jcrawford@zaner.com
Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources.
EMOTION is your enemy more than any market will ever be. My Market Update employs a trading plan that a trader can understand and trades that have reasons so that a learning process evolves - helping you combat emotion and establish discipline.
The Market Update is designed to not only help you learn how to trade but also improve your trading approach. By reviewing technically all the major markets as well as give trade suggestions that include the reasons for the trades, you are able to follow and/or compare my work with yours. Or, if you do not have the time, as many don't, simply use my guidelines for placing your own trades.
YOU'RE MISSING SOMETHING! The Market Update is published on Tuesday and Thursday. On alternate days I also publish a Trade Alert that gives suggested trades as well. To sign up for both and have the convenience of receiving all my information via email. visit my website: http://www.tradingfuturesmarkets.com/, register and submit. And you may want to request some of my free trading booklets too!
ESTABLISHING A TRADING ACCOUNT: I offer brokerage services and personal assistance for every level of trader. Open your account with me and deal directly with me - learn while you trade. Feel free to call or email me at any time without obligation. I welcome hearing from you!
TRADING COSTS: All closed out positions include a trading cost of $49.00 round turn plus a maximum potential for exchange fees of $6.00. Most exchanges do not have total costs of that amount but to consider the maximum potential, it is included. Commission costs can be less if full service is not required.
TRADE ALERTS: None for Friday.
Important information regarding placement of trade alert orders:
1. They are placed during the day only (and not at night). All trades are placed in the electronic markets only.
2. They are placed on a buy stop or sell stop basis. That means the market must rally up to the stop price to go long and/or sell off down to the stop price to short.
3. All orders are good for that day only.
METALS COMMENTS:
DEC COPPER: Last time I suggested that copper should resume a downtrend based on the long term chart. It did sell off under 325.00 but it did not hold. Today it rallied and is now pushing up against the 20 day ma on the daily chart and is back over 325.00. It is still negative on the monthly but it appears there could be more to this rally. Closed 332.55, up 9.40.
DEC MINI GOLD: I pointed out that gold's next hurtle was 1240.00. So far it remains an obstacle. It closed over 1240.00 yesterday but is back under it today. Going back to June and prior that is a heavy resistance area. Closed 1237.70, down 3.60.
DEC MINI SILVER: Switching to December contract. Silver's next hurtle is 19.500 long term. It has caused problems before. It is pretty much the high end of the range that silver has been in since May. That doesn't tell one much. Beyond 19.500, the 20.000 resistance is next. Right now it is having problems at 19.00. Closed 19.022, down .050.
ENERGY, CURRENCIES & BONDS:
OCT MINI CRUDE OIL: In the last Update, crude looked headed for 70.000. It reached 70.760 yesterday before rallying. It has continued that rally today. Having sold off over 12.00 points without so much as a hiccup to the upside, it is entitled to one. It should be an opportunity to short. This rally does not change the long term outlook - more sell-off. To change the current negative red flag forming on the monthly chart, crude needs to rally and close over 80.000 by month end. The next key number long term is 69.50. Closed 73.36, up .84.
SEPT MINI JAPANESE YEN: The daily chart triggered a sell today from yesterday's inside day. Neither long term chart supports that. On the monthly chart the current wave up suggests a potential to 125.000 and the macd does not have any negative implications. Just watching for now but this market is setting up for a good short position. Closed 118.58, up .54.
SEPT SWISS FRANC: All the charts look positive and suggest a potential target of 100.00. The daily triggered a buy yesterday but the risk required for the trade was too much. Watching closely. 97.60, up 41.
SEPT DOLLAR INDEX: It triggered a sell today from yesterday's inside day on the daily chart. This sell-off should be an opportunity to buy based on the long term charts. The only thing that would change that is a close under 80.000. If it did that, it has good long term support at the high 78.000 level that has held the market before - prior to strong rallies. On the daily chart, there is support down at 82.500 and the 20 day ma intersects at 82.000. Those are the near term areas to watch. Closed 82.983, down .348.
SEPT MINI EUROCURRENCY: There is not any change with this market. Long term it continues to look down. A rally should be an opportunity to short. Closed 127.02, up .48.
SEPT CANADIAN DOLLAR: The daily chart looks ready for a good rally. The trouble is with the long term charts. They are holding in some support but that is about it. Too much contradiction. Closed 94.49, up .22.
SEPT AUSTRALIAN DOLLAR: The long term charts look positive but there just isn't enough to warrant a trade even though the daily is holding important support and may rally to 90.00. Just watching. Closed 88.38, up .35.
SEPT BONDS: The daily formed a key reversal top yesterday. The long term charts are just not suggesting any potential top to this move yet. Just watching. Closed 136.00, up .26.
Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge and financial resources. Opinions are subject to change at any time and are not a solicitation or recommendation to buy or sell futures contracts or options on futures contracts. The information contained in this message has been obtained from sources believed to be reliable but is not guaranteed as to its accuracy or completeness. All known news and events have already been factored into the price of the underlying commodities discussed.
Past performance is not indicative of future results. All suggested trades are based on technical signals/indicators and do not include slippage or cost. Not all trades suggested are taken. Results are based on what the signal indicates not necessarily an actual trade.
Actual results may vary.
