GENERAL STOCK MARKET COMMENT
The U.S. stock indexes closed sharply lower today as traders experienced a post election hangover after pushing index prices sharply higher on Tuesday. News today from ADP that projected a very weak U.S. jobs report on Friday also reminded traders how sick is the U.S. economy, with recovery nowhere close at hand. There are still early technical clues to suggest market bottoms are in place. However, as the weakening economic news continues to trickle into the marketplace, it will be hard for the stock market bulls to get excited about sustaining any solid uptrend in prices. Do remember that during serious economic weakness or recession that generally the stock market puts in a low well before all the bad economic news is reported.
INTEREST RATES
December U.S. T-Bonds closed up 1 26/32 at 117 6/32 today. Prices closed near the session high on more short covering and flight to quality buying amid a big sell off in the stock market today. A bullish double bottom reversal pattern has formed on the daily bar chart. Bulls have fresh upside near-term technical momentum.
ENERGY MARKETS
December crude oil closed down $5.35 at $65.18 a barrel today. Prices closed near the session low today. A sharply lower U.S. stock market pressured the crude today. Crude oil bears still have the near-term technical advantage. Prices remain in a 3 1/2 month-old downtrend on the daily bar chart.
December heating oil closed down 1,086 points at $2.0530 today. Prices closed near the session low. Bears still have the near-term technical advantage. A 3 1/2 month old downtrend is in place on the daily bar chart.
December (RBOB) unleaded gasoline closed down 1,077 points at $1.4250 today. Prices closed near the session low today. There was not follow-through buying interest today and a bullish "key reversal" up was not confirmed on the daily bar chart. The bears are still in technical control. Prices are still in a 3 1/2 month old downtrend on the daily bar chart.
December natural gas closed up 4.1 cents at $7.26 today. Prices closed nearer the session high and closed at a fresh four week high close on more short covering in a bear market. The bulls have some fresh upside near term technical momentum but need to do more upside work to begin to suggest that a near term low is in place.
CURRENCIES
The December Euro currency closed down 15 points at 1.2916 today. Prices closed near mid-range. Bears still have the overall near term technical advantage amid still no strong technical clues that a market low is close at hand. Prices are still in a 3 1/2 month old downtrend on the daily bar chart.
The December Japanese yen closed up 116 points at 1.0152 today. Prices closed near the session high today. No serious chart damage has been inflicted recently. Bulls still have the near-term technical advantage.
The December Swiss franc closed up 18 points at .8605 today. Prices closed nearer the session high today. Short covering in a bear market was featured again today. Bears still have the near-term technical advantage.
The December Canadian dollar closed down 96 points at .8576 today. Prices closed nearer the session low after hitting a fresh three week high early on. Bulls still have some upside near term technical momentum to begin to suggest that a market low is in place.
The December British pound closed down 6 points at 1.5886 today. Prices closed nearer the session low. Bears still have the near term technical advantage. Prices are still in a six week old downtrend on the daily bar chart.
The December U.S. dollar index closed up 13 points at 85.50 today. Prices closed near mid range today. No serious chart damage has occurred recently and the bulls still have the overall near term technical advantage. There are no strong early technical clues of a market top being close at hand.
PRECIOUS METALS
December gold futures closed down $16.20 at $741.10 today. Prices closed near the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured gold today. Bears still have the overall near term technical advantage.
December silver futures closed up 27.0 cents at $10.40 an ounce today. Prices closed nearer the session high today and closed at a fresh three week high close. Bears still have the overall near term technical advantage. Prices are still trading below a 3 1/2 month old downtrend line on the daily bar chart.
December N.Y. copper closed down 1,460 points at 181.20 cents today. Prices closed near the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured copper today. Copper bears still have the near-term technical advantage. Prices are still in a four month old downtrend on the daily bar chart.
SOFTS
March sugar closed down 4 points at 12.67 cents today. Prices closed nearer the session high today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured sugar today. Prices are still trading below a 2 1/2 month old downtrend line drawn from the August and September highs.
December coffee closed down 50 points at 116.20 cents today. Prices closed nearer the session low today but did poke to a fresh four week high early on. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured coffee today. Coffee bears still have the overall near-term technical advantage.
December cocoa closed down $27 at $1,972 today. Prices closed near the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured corn today. Cocoa bears still have the overall near term technical advantage.
December cotton closed down 203 points at 44.29 cents today. Prices closed near the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured cotton today. The cotton bears still have the solid near term technical advantage. Prices are still in a 7 1/2 month old downtrend on the daily bar chart.
January orange juice closed up 315 points at $.8600. Prices closed near the session high today. More short covering was featured. Bears still have the overall near term technical advantage. However, prices have been trading sideways for four weeks and that does favor the bullish camp as it suggests a bottoming process.
January lumber futures closed up $4.00 at $209.50 today. Prices closed near the session high and were supported by more short covering in a bear market. Lumber bears still have the overall near-term technical advantage.
GRAINS
December corn futures closed down 21 1/2 cents at $3.91 1/2 today. Prices closed near the session low. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured corn today. Bears gained some fresh downside technical momentum today. Corn prices are still trading below a four month old downtrend line on the daily bar chart.
January soybeans closed down 54 1/2 cents at $9.04 1/2 today. Prices closed near the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured beans today. Soybean bears remain in overall near term technical command and gained fresh downside momentum today.
December soybean meal closed down $12.80 at $265.00 today. Prices closed near the session low today. Bears still have the overall near-term technical advantage.
December bean oil closed down 195 points at 34.02 cents today. Prices closed near the session low today. Bean oil prices are still in a four month old downtrend on the daily bar chart. Bears still have the near term technical advantage.
December Chicago SRW wheat closed down 35 1/4 cents at $5.37 1/4 today. Prices closed nearer the session low today. Mostly bearish "outside markets" sharply lower crude oil prices and sharp losses in the stock market pressured wheat today. The bulls had gained some fresh upside technical momentum, but lost it today. The wheat bears have the overall near term technical advantage and regained downside momentum today.
LIVESTOCK
December live cattle closed up $0.42 at $94.27 today. Prices closed near the session high today and did close at a fresh three-week high close on more short covering and bargain hunting buying interest. While the bears do still have the overall near-term technical advantage, the bulls have gained upside momentum recently to begin to suggest a near-term low is in place.
November feeder cattle closed up $0.15 at $100.65 today. Prices closed near the session high today and poked to a fresh four-week high on bargain-hunting buying and short covering. The bulls have gained technical momentum recently to begin to suggest a near term low is in place.
December lean hogs closed up $0.05 at $54.47 today. Prices closed near mid-range today. Prices set a fresh contract low early on today. Hog bears still have the near term technical advantage, amid bearish cash market fundamentals. Prices are still in a three month old downtrend on the daily bar chart. There are no clues of a market low being close at hand.
February pork bellies closed down $0.85 at $83.80 today. Prices closed near mid-range and did poke to a fresh contract low. Bears still have the near-term technical advantage. Prices are in a six week old downtrend on the daily bar chart.
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