THIS PUBLICATION CONTAINS THE VIEW AND OPINIONS OF THE AUTHOR, EXCEPT WHERE OPINIONS ARE ATTRIBUTED TO OTHER SOURCES. WRITTEN PERMISSION IS. REQUIRED PRIOR TO ANY DISTRIBUTION OR REPRODUCTION. FUTURES TRADING IS RISKY AND CAN CAUSE SUBSTANTIAL FINANCIAL LOSS. THE USE OF OPTIONS AND OPTION TRADING INVOLVES A HIGH DEGREE OF RISK. THE USE OF STOPS MAY NOT LIMIT LOSSES TO INTENDED AMOUNTS. SPREAD POSITIONS MAY NOT BE LESS RISKY THAN OUTRIGHT FUTURES POSITIONS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. SOURCES ARE BELIEVED TO BE RELIABLE BUT NO ASSURANCE IS MADE FOR ACCURACY. ADDITIONAL RISK DISCLOSURE IS AVAILABLE.

FuturesCom

BI-WEEKLY INVESTMENT OUTLOOK

March 10, 1997

June --Yen: Closed down 54 on Friday. Selling pressure will be seen near 8353 Early next week. Above that a Resistance is near 8400 Where we would sell for a continuation of the trend lower. Use a stop close over 8406. Support is near 8225 which is critical, a trade under 8220 is an indication that the contract low of 8130 will be tested.

Early Resistance on Monday is 8325 where we would be tempted to sell for a quick turn and risk only 15 pts. More Resistance is near 8353. Support is near 8300 a trade under augurs for a test of 825 where day traders can buy for a bounce and risk 35 pts. The Yen lost a bit of momentum Friday and now appears to be heading to lower levels. Stay Tuned

The June Swiss Franc: Long Term we see June Swiss trading near 6200.

Long term traders Go short near 6868 or on a close under 6809 for a position and resumption of the down trend. Early support next week is near 6729 more support is near 6673 that will likely trade on any further decline.

Resistance Monday is near 6836 where we would sell for a turn lower and risk a 2- day close over 6875. A close under 6809 is negative for a slip to new lows and beyond.

Trade Accordingly.

June British Pounds, we attempted to sell June British near 161.50 Friday, the high was 161.26 early Thursday Night...Darn....

We know see a test of 157.60 sooner than later in the BPM. Sell June British near 160.90 if able and risk 100 pts or a two day close over 161.50.

Monday early Resistance is near 160.90 then 161.38 above that 16216 offers good sellers. Support is near 159.20 then 158.90 with our target below at 157.60...

June D-Mark our target is 5500 or lower by June. Resistance next week near 5937 where we would sell and risk a close over 5957. Support is near 5830 then 5804 where we would buy for a bounce only with a risk of 30 pts.

Monday the June D-mark has Resistance at 58.70 then 5883 where we would sell for a turn Lower and risk only 20 pts. Support is near 5855 then 5830. A trade under 5830 is an indication that 5805 then 5792 will trade....

Trade accordingly..

Gold revved up the old engines then Blew a gasket.... Gold acted as expected over the last two weeks. Below are the comments from 2-22-1997

April Gold Longs should stay long for now, sell rallies if able into 365 to get ammo, Then buy a pullback and use a stop close under 335 for two days and say “The Hell with it ”

Be long.

April gold made a high of 366 on Monday March 3rd. Nimble readers were able to sell into the 365 region and exit.

Strong and hearty Longs from the recent Dip near 352 should now use the stop close under 335 for two days and light the candles.

We feel Gold has value at these levels and should be accumulated for long term positions. Technically speaking April Gold needs to hold over 345 or 342 basis the close for any upward trade to occur. Resistance is now near 352 and 355. A close over 352 is friendly.

Trade accordingly.

May Silver Longs should use a stop close under 505 to protect for now... We still feel one should Buy dips and Be long. Support is near 514 then 505 with more at 497 where we would have buy orders resting. Resistance is near 522 then 532. A close over 522 or 526 tells us to add to longs and then sell into the 538 region if able.....

May Copper is destined for 114 in our opinion. Sharp Declines Should Bought. 2-22-1997 114.50 traded Friday 3-07 then a sell-off ensued.

We have now raised our targets to 120 in May. Nimble traders sold some longs from 108.70 into the 114 region and now should buy a setback.

Support Early next week in May Copper is 110.85 where we would go long for a bounce and hold on a close over 109.60, use a stop close under 108.40 since we want to buy there also.....Nearby resistance is at 112.50/ 112.80 then 113.30. If May Copper closes over 112.50 early next week look for 114.80 then 116.40 to trade

Trade Accordingly

April Crude Oil:

Crude Oil suffered over the last two weeks, we were buyers and wrong. However we do feel that Crude eventually would slow its decline.

April Crude is in a position to rally towards the 2199 region. Support is near 2091 next week where we would buy with a stop under 2083 basis the close. Resistance is near 2199 then 2219 to 2226 where we would sell with a 50 pt stop.

Next Week early support is near 2107 to the 2091 region where we would probe the long side using a stop under 2056. Resistance is near 21.33 then 21.41 then 2166 where we would sell an early rally for a turn and risk a trade over 21.77. Pick your poison....

“If a problem surface’s during the Growing Season Beans will go to over $ 10.00 this year”--FuturesCom- Feb 9 1997

We still hold this view...

May Beans set a contract high on Friday and qualified for our weekend rule. Our nearby target for this week is 844 3/4 to 8451/4 where we would SELL excess longs, Yet still maintain a small long position A close beyond that 849 then 859 to 866 should trade.... If the Beans go into a ‘Super Bull’ phase as coffee did we suspect they will trade into the

Support is near 823 to 814 then 806 where we would buy if able next week.

Monday, May Beans have support near 827 1/2 then 823 3/4 and 820 3/4 where we would Have buy orders waiting. Critical support will appear at 817 1/4 and 816 3/4. What we are saying is that if Beans come in Lower by 10 to 15 cents on Monday BUY. Use a stop close under 806 for three days If you can handle it.

Resistance on Monday is near 836 1/4 then 839 with more at 845.

If May Beans attempt to close over 846 the Shorts are really in trouble and would probably throw in the towel and cause a spurt to the 866 region. Trade accordingly

We have not had a drought in Years.....

Conservative Spreaders should continue to Buy September Beans and Sell November Beans...More hearty Traders can Buy August and Sell Nov or Jan...

If you have not put on any of these spreads we suggest only the Sep/ Nov.

July Bean-Meal has support near 258.8 where we would buy an early break for a bounce. Resistance is near 263 then 267. Be long for a move over 3.00!! Protection should set under 253 for three days. Trade accordingly...

July Soybean Oil has support near 2600 where we would buy for a position, use a stop close under 2553 for three days.

Corn:

Futurescom 2-22 Technically speaking Monday’s trade will be an important one. Friday, July Corn closed at 292 1/4 We suggest to buy near 289 with BOTH HANDS use stops under 282 basis a two day close if you can handle it.... Resistance is near 294 the 299 A close over 299 augurs for a test of 310 then 326 by the Summer.... July corn closed at 303 Friday, March 3rd. After a test of 307.. Enough said.

Next week July corn has support near 298. Resistance is near 312. Corn need to maintain it’s posture more than the Beans because of the overhead resistance. It most likely will.

Spreaders can Buy Sept Corn and Selling Dec

Monday support is near 302 in July Corn. Buy there and risk a close under 296. Resistance is near 307 3/4 then 312. We feel corn will start to accelerate up shortly

Trade accordingly.

Wheat:

May Wheat has support near 371 1/2 Resistance is near 382 and 384 A close over 384 is friendly for a test of the 403 region.

July Wheat Longs for the Pull should use a stop under 348 basis the close for two days. Resistance is near 367 then 372 a close over 368 augers for a test of 396. (Yes 396.00)

Day traders can buy Support near 361 3/4 for a turn higher and use a stop under 359.

Be patient and long....

May Coffee

May coffee has not had more than two days down over the last 15 or so trading sessions. That’s a Bull market and any body trying to pick a top has to be very Good. The last time May coffee broke down over 10 cents in a two day period the ensuing rally carried for over 50 cents. The 154 low on 2-18 then a 209.50 high on 3-05.

Next week should be a dicey one in Coffee. Support is near 184.05 then the 174 region. Resistance is near 193 and 205.

Monday May coffee has support near 188.20 and 189.20 If May Coffee opens over this level And trades thru 193.50 we suspect an explosion will occur as any short will most likely either watch then run or just plain run. An open under 188 is negative for a move down into the 186.80 region where support remains and we would buy for a bounce and risk only 150 pts...

July Cotton. A close 7880 should power Cotton to test the 8100 region.

Cotton may be the next sleeping giant....

Support is near 77.70 where we would buy an early break and risk a trade under 7720. Resistance is near 7870 then 7920 where we would sell out any longs and buy a set back. Be long.

May Sugar

May Sugar has support near 1089 where we might like to probe the long side for a trade use a stop under 10.78. Resistance is near the 1117 then 1136 region where we sell and buy a set back.

Trade accordingly.

May Cocoa has support at 1310 where we would buy for a position and risk a close under 1259. Resistance is near 1358.

April Cattle:

This week April Cattle has support near 6742 where we would buy for a position and risk a close under 6682. Resistance is near 6917 then 6980. An open next week over 6860 bullish for a move into the 6907 region. A close over 6912 this week augurs for a test of the highs...

Monday support is near 6812 where we would have buy orders waiting and risk a close under 6832. Resistance is near 6852 and 6902. Trade accordingly.

June Hogs:

Any remaining Shorts in June should be getting using a stop over 7757. Support is near 7632 where we would buy an early break for a bounce. Resistance is near 7727 then 7755 a trade over would indicate the pressures off and the Bulls have the upper hand.

Trade accordingly.

We have been Bearish to Hogs and remain that way however we respect the numbers and Demand for pork may increase into the summer. We would refrain from selling June hogs unless on sharp rallies and would even be long for a rally back into the 7900 region....

April Hog:

Short's in April Hogs near 7467, risk a trade over 7122 as a stop to exit. Resistance Next week is near 7267 where we would sell for a turn lower. Support is near 6735 where we might be tempted to go long for good bounce ....

For Monday, Resistance is near 7117. Support is near 6992 where we would buy for a trade higher over the next several days... Risk a close under 6912.

Any remaining March Bellies Shorts near 8210 should be out on the open Monday.

In May Bellies

Go long May Bellies on an open this week over 7655. Resistance is near 7712 a trade Over augurs for a test of 7797. Sell Short near 8047 and risk a close over 8157...

Bonds.

June Bonds acted well off our low area at 108-29, nimble traders bought there on Friday and picked good points after the break. However we prefer to sell a rally from here. We feel Bonds were oversold and a good short covering rally was overdue. Longs should not be put on unless June Bonds can maintain a posture over 109-31. If they fail now expect the recent lows to be tested quickly and we feel they will not hold and a likely target is the 107-17 region...

Next week June Bonds Resistance is near 110-31 where we would go short for turn and risk 10 pts. Or a close over 111-11 More resistance is near 111-09 a close over would augur for a test of 111-31 then 112-15 Support is near 109-31 a trade under 109.29 would augur for a test of 109-09 and 108-31. More remains below at 108-07 then 107.16 that is our Target if a close under 109-29 occurs.

Trade accordingly.

SP 500: We will provide June Analysis Today in a later report.

The March SP500 has early Resistance near 808.15 Where we would sell for a turn and risk 65 pts. Above that 811.90 should trade. Trade accordingly. If the Rally continues look for 813.40 then Resistance at 815.75 and 816.65 where we would sell for a turn and risk 100 pts. Above that 818.70 offers some selling then 819.40.

Support is near 804.75 to 804.40. A trade under 804.40 is negative for a slip into the 802.90 region a failure of that area is not good.. It would indicate to us that a test of 798.10 then 795.70 where we might probe the long side. With a tight stop. Under 794.30. More support is near 793.90. If that fails we should see 786.40 and an eventual 779.75 down to 777.70 that should hold any disaster break.

Happy Trading

Bill