THE
FuturesCom
BI-WEEKLY INVESTMENT OUTLOOK

Sunday, February 09, 1997 4:29 PM

--When in Doubt Stay Out --

On the Frenzied Forex Front.

March J-Yen: closed up 43 on Friday after a wild ride that saw the JYH trade in a 227 pt range. Selling pressure will be seen near 8268/8293 next week. Above that a spurt into the 8461 region within two weeks is not out of the question. If this were to happen we would be sellers for a continuation of the trend lower.

Monday the JYH has support near 8168 which is critical, if it holds a sharp rally to 8293 is likely. Below that support is near 8134 where we would buy for a day trade and risk a trade under 8105. Early Resistance on Monday is 8194 to 8225 then 8268. With more sellers near 8300 to 8314 where we would be tempted to sell for a quick turn and risk only 25 pts.

The March Swiss Franc recovered nicely on the back of the stronger Yen. The close over 7013 Indicates a thrust into the 7058 to 7065 next week is likely. Resistance above that is near 7158 to 7165 where we would be a seller for a turn lower and risk 25 pts .Long term traders Go short near 7245 for a position and resumption of the trend down.
Early support next week is near 7015 where hearty traders should buy. Risk 20 pts. more support should appear near 6965 ... Trade accordingly.

March British Pounds can be bought near 161.40 for a position with a stop under 160.80 basis a two day close. We expect the BPH test 164.20 shortly if 161.40 can hold...

DMH has support near 6033 where we would buy with a risk of 30 pts. More support remains near 5983 and 5959. Resistance is near 6059 then 6083 and 6101 to 6117 where we would sell and risk only 20 pt Trade accordingly

The Precious Metals: April Gold came with $ 1.00 or so on Friday from our buy for the "Pull.' This means you buy a few and hold..

We continue to Recommend buying December 1997 Gold Calls For under 110 if able. The odds are unlikely that Gold will go up over $ 50 in the next 6 Months, but if it does ...... Gold has value at these levels and should be accumulated for longer term positions. Technically speaking April Gold needs to hold over 339 for any upward trade to occur. Resistance is now near 349 and 352. A close over 350 augurs for thrust into 360 ...

Trade accordingly.

Silver should be bought on pull backs into the 483 region if able. Longer Term we would like to see a thrust over 520 to feel confident a low may be in. A rally to 515 would encourage us to sell off a few long accumulated during this period of weakness. We then would like to roll to May or July on the next break. FuturesCom 1-25-1997

Over the last two weeks (ten trading sessions) March Silver has traded under 483 four separate days, 484 was the low once and 483.5 was the low once

Six times in the last ten sessions that March Silver traded into the 483 region... Friday it did it again and produced an outside day to the upside. Higher prices are due shortly....

Buy dips and Be long...

Copper is acting rather flighty to say the least. However a sharp decline Should be bought in May Copper...Stay Tuned.. Support Early next week in March Copper is 105.75 where would go long. Nearby resistance is at 107.75 to 108.10 then 109.75. A close over 107.80 augers for a test of 109.45 and 110.95 Trade Accordingly

The Exciting Energies

March Crude Oil Crude Oil has declined almost $ 4.00 since it’s peak ion January 9 at $ 26.05 We remain Friendly to Crude but will only buy weakness. Providing it maintains a close over 2170.
Next Week early support is near 2214 where we would probe the long side using a stop under 2167. Resistance remains near 2256/ 2277 a close over 2456 indicates a thrust back into the old Bull pattern and a move to 2392. Failure to hold 2177 on a two day closing basis is negative, the result would be a test of 2000. Buy this break....

The Grande Grains:

March Beans If a problem surface’s during the Growing Season Beans will go to over $ 10.00 this year. Futurescom will issue a Grain Special Report .....Stay tuned...

March Beans have critical support near 732 1/2 on Monday, have your buy orders ready and risk a close under 725 3/4. For two days... below that commercial buying should surface near 718.. Resistance is near 743 to 746. If March Beans close over 746 the shorts have a problem.... We then would be tempted to buy few in anticipation of a move towards 760. Trade accordingly.,...

March Corn has firmed up lately, the close on Friday was very supportive to the market and we suggest a test of higher levels is now likely.

Long term traders may wish to go long a few Corn Contracts and sell calls And keep it in their back pocket.

Technically speaking Monday’s trade will be an important one. Friday, March Corn closed at 271. We suggest to buy near 269 with stops under 267. Resistance is near 275 however a close over 273 augers for a test of 279....

Trade accordingly.

Wheat: July Wheat: We still advocate purchases of Wheat for a rally. Risk a close under 335 for two days. A close over 343 augurs for a test of 349. Support next week is near 337 3/4 which we need to hold to stay in the current Pattern. Resistance is near 343.

Softs:

Softs: March Coffee “Resistance is near 142.40 where aggressive traders can sell for a turn. With a stop over 143.70 The Failure to move higher than 142.50 would indicate a decline to 13755 is likely. Where we would buy to HOLD with a 100 pt risk.” 1-31-1997 ‘‘Our target is near 152.90 this week’’ 2-05-1997

On Friday, March Coffee has Reached our Target once again. If Coffee can maintain a Bull posture at a level over 139 during the Next few weeks Where will it go during the Freeze Season???? 1.80 or 1.90 is likely.

On Monday if March Coffee opens up over 150.80 we would be buyers for a quick move to Resistance near 153.30 to 154.05. More Resistance is near 156.90 to 158.55. A failure to move higher than early 152.90 would indicate a decline to 149.60 is likely Where we would buy for a bounce with a stop under 147.50 More support remains near 143.05 where we would buy for a bounce and use a two day close under 141 for protection...

Trade accordingly....

March Cotton has support near 7425 then 7375 more support is near 7320 Resistance is near 7530 and 7620. We remain friendly and suggest to hold longs with a two day stop basis the close under 7400...

March Sugar support is near 1049 where we might like to probe the long side for a day trade use a stop under 1035. Resistance is near 1063 then 1089/1096 where we would sell for a position with a stop close over 1102 for three days.

March Cocoa support is near 1234 over the next two weeks, we would buy a decline into 1259 and use a stop close under 1233 for two days...Resistance is near 1305 then 1334. Trade accordingly.

In the Lively livestock Sector:

April Cattle longs should risk a close under 6472 for two days. Longer Term Resistance is near 6650 above that look for a trade against 6687 then 6737. Be long for the pull...

April Cattle has nearby support in the 6542 region where we would buy for a bounce on Monday. More support will appear in the 6460 to 6470 region, buy there if able.... Resistance is near 6592 then 6620 early next week ... We still remain friendly to Cattle and suggest buying the dips for a rally into the spring....

Buy June hogs near 7847 if able risk a two day close under 7762. Resistance is near 8047 to 8110 where we would sell for a turn with a 80 pt stop Trade accordingly

Over the several trading sessions, Buy April hogs near 7287 for a position risk a close under 7255 for two days...Sell April Hogs near 7587 to 7612 risk 50 pts basis the close. Monday, April hogs have support near 7387 where we would buy for a bounce and risk 35 pts. Resistance is near 7467 where we would sell for a turn and a trade over 7517

Feb Bellies have support near 7687 then 7587. Resistance is near 7860 then 7907 to 8025 where we would sell for a turn and risk a close over 8062. Failure to rally over 7907 early next week is a hint of a reversal stay tuned...

March bellies have resistance near 7787 then 7827 where we would sell for a turn and risk 50 pts. Support is near 7702 and 7637. If March Bellies fail to hold 7700 early next week Sell and risk a close over 7777.

Bonds and SP500:

March Bonds have early resistance near 112-17, failure to breach that level Monday and a close under is negative. A test of 111-17 would then be likely. We suggest to have buy orders waiting near 111-17. More support is near 111-05. Good resistance is near 113-05 then 113-17 where we would go short and risk 10 pts basis the close. A close Monday over 112-17 is friendly and can be bought for a rally to test 113-05.

Trade accordingly.....

March SP 500 The March SP500 has support at 793.90 for early Monday, it must hold there if New highs are to be set shortly. Our near term target is now 801 then 802.90 to 804.40 where we would sell for a position and risk a close over 805.90.

Resistance Monday is 795.40 to 796.25 where we would sell for a turn and risk 130 pts. Support Monday is 793.90 then 786.20 where we would buy an early break for a bounce use a 110 pt stop. Below that 783.60 is likely to trade. It will get real interesting below that as the next level is 779.75 is a very Likely target for any downside move next week. . We are refraining from any long term view of the market art these prices and wide swings However we will try to give the best scenario as we see it as it comes about. We do however urge caution as we see a break back into the 779.50 region a more likely than not....

. Happy Trading

Bill

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