FuturesCom
Bi-Weekly Investment Outlook

Sunday, May 04, 1997
10:22:07 AM


A trader should not swear eternal allegiance to either a bull or bear
side.
His concern lies with being right.


On the Frenzied Forex Front.
June --Yen:

Selling pressure will be seen near to 8008 then 8029-8044 . Sell 8008
and risk a close over 8055 , Above that Resistance is near 8118 to 8134
Where we would sell for a continuation of the trend lower. Use a stop
close over 8142. Above that 8194 to 8225 offers good sellers..
Support is 7939 buyers can go long for a turn and risk a close under
7908 below that a wash is likely to 7861 then 7794.
We would have buy orders ready near 7689 for a good bounce risk a two
day close under 7675. ....

The Trend is Your Friend...

The June Swiss Franc
Selling pressure should be evident early this week near 6861 where we
would sell for a turn lower and risk a close over 6919. Above that 6961
is likely.
We also would sell near 7063 for a turn and resumption of the Downtrend.
risk a close over 7092. Note that a Failure to move above and maintain a
posture over 6861 early this week indicates a test Downside objectives
near 6741 then on to 6500.
Early support next week is near 6809, below that 6789 is likely to
trade.. then 6761 where we would be tempted to buy for a ‘charity’
bounce and risk only 25 pts.
Sell close under 6741 it augurs for full blown wash to the 6500 region.

Trade Accordingly.


June British:
Position Long at 162.18 use a stop under 161.50 for two days in a row to
protect.
Exit near 166.20 MIT if able...

Nearby Resistance should appear near 16306 early this week then 163.72
and our first target of 164.20. Above that 164.56 above that 166.20 is
likely

Early Support is near 1261.02 where we would buy for a bounce and risk a
close under
160.90 for two days. Below that 160.52 and 160.32 offers good support .

Be long ...

June D-Mark
Resistance next week should raise its head near 5805 where we would sell
for a test of 5758 use a close over 5858 a protection since 5855 is a
place where we would sell for a turn use a stop close over 5922.
More Resistance should appear near 5945 to 5957. Support is near 5758
then 5729 to 5716. Below that a wash should be in progress to 5577.. Buy
there for a good bounce risk a close under 5560.

The downside target is still near 5500 for June...

* The Weak Currencies are trying to hold as buyers are looking for a
reversal. We
respect this.. However a move of 75 pts or so lower and all the longs
are losing Money.. not just some ALL. If the longs ‘run’ a wash could
occur fulfilling our objectives set months ago...stay tuned....

Trade accordingly..


The Precious Metals:

June Gold Position long 341.80 use a stop close under 335 for three
days in a row.
Exit near 351.80

Early Resistance is near 344.30 above 348.8 then 351.90 is likely where
we would sell
for turn and risk $ 4.00. Support is near 338.5 buy there for a
position and risk a close under 332.

July Copper
Early Support is near 109.60 where we would be a buyer with a stop close
under 107.45.
more support is near 108.85 and 107.55. wee would look at a drop into
the 105.55 region s a buying opportunity , protect yourself with stop
close under 104.00.
Early Resistance is near 111.45 then 112.80 . A close over 111.45 or
112.80 augurs for a test of 113.40 then new highs if the Copper acts
like a ‘kettle’ and boils

Still Friendly...



July Platinum: Position long from 372.9 use a stop close under 364.4 for
three days. in a row. Exit 384.4 MIT .

Nearby Support is near the 368 where we would buy for a turn higher
use a stop close under 364.4 More support is located near 356.8
Resistance is near 374 then 376.8 a close over 376.5 augurs for a test
of 384.5 ...beyond that 393 is likely...

Trade Accordingly

July Silver: 2 Longs from 477 (roll & BW) & 1 @ * 472 (MAC)Stop is a
close under 464 for three days in a row on 2 and a close under 455 on the
last one...Exit 2/3 at 504 MIT
balance at 519.

Today we see Support near 469.5 then 464.5 where we would have buy
orders waiting risk a trade under 455. Resistance is near 479.5 then
481.5 a close Above 485 indicates a test of 504 where we would sell 2/3
of the position...let the balance go near 519

Stay Tuned...
Long term still Friendly

The Exciting Energies


June Crude Oil..

Early Support is near 1958 Buy there. Risk a close under 1936 for three
days in a row...Light the candles....

More support is near 1936 here we would be a buyer for a bounce only.
Risk 15 pts.

We would look upon a drop into the 1905 region as a buying opportunity
for June Crude.
Buy there if given the chance . Risk a close under 1902 for three days in
a row.

Resistance is near 1982 then 1996. Above that 2008 / 2015 is likely.
Any trade over 2015 augurs for a thrust to the 2034 /2042 region.. then
2065 where we would sell any longs and/ or go short for a turn and risk
a trade over 2092.

Trade Accordingly...

July Unleaded
Support is near 5905 where we would buy for a position, Risk a close
under 5770.
More support is near 5865 then 5830.
Resistance is near 5975 then 5990 a move higher augurs for a test 6085 a
close over
indicates a test of 6130 then 6160...

Bears will raise their heads near 6335 above that 6400 should trade...

* if July Unleaded tests 5900 region then moves over 5985 or closes 5985
it indicates a test of the 6130

A close over 5990 after a test of 5900 is friendly and augurs for a
thrust to 6130

Trade accordingly

Buy...Dips


June Heating Oil.
We see Support this week near 5175 where we would buy for a turn higher
and risk a close under 5135 for three days in a row...Resistance is near
5505. Where we would sell for a turn ,risk 100 pts .
Above that 5695 is likely where we would sell for a quick turn lower and
risk 120 pts.


we would use this current weakness to assume positions for the Winter...
Stay Tuned ...

The Grande Grains:

July Beans : Long 867 1/2 ...use a stop under 860 for three days in a
row.

Early Support is near 8741/2 where we would buy for a bounce and risk 3
cents.
Go long July Beans if they close over 888 3/4 risk a close under 873
initially...
More Support is near 860 3/4 where we would buy for a turn and risk a
close under
848 for two days in a row..

Resistance is early near 888 3/4 above that 894 is likely More sellers
will either throw in the towel at 902 or Run. If they run a test of 909
is likely.
A close over 888 3/4 indicates to us a test of 909 beyond that 919 ..

$10.00 Beans are still a real possibility this year and we still like to
buy the Breaks.

Spreaders can buy Sept and Sell November Beans or Jan

Long Term Traders
New Crop November Beans still paint an interesting picture.
With a expected huge crop this year the bears are short, waiting for the
next guy to sell.

At some point the market will put some weather premium on the New Crop
We believe that will occur shortly...

We would consider a dip into the 687 region as a buying opportunity use
a stop
under 677 basis the close for three days in a row..

If Nov Beans can’t move lower in the near term a rally to 707 then 725
may occur

Resistance is near 708 /12 a close over is friendly,

July Bean-Meal:
Support next week is near 2864 where we would buy and use a stop under
278 for three days in a row as protection...

More support is near 278.5 where we would seriously consider buy for the
pull into July...
under that buyers should appear near 271.. buy there and risk a close
under 269 for three days in a row. Below that 258.80 is where we would
have buy orders waiting to purchase a deep break if it were to happen...

Resistance is near 289 a close over augurs for a higher ground. first
294 Then. contract high set on 4-02-1997 then perhaps 303. Where we would
sell any longs accumulated from lower prices and await a dip.

Trade accordingly...

The Beans and Meal need to maintain momentum for the next week ..if they
do the shorts are in trouble again.

Buy Dips and be careful.

July Bean Oil

Early Support is near 2517 then 25056 where we would buy for a turn and
use a stop close under 2469 since we want to buy there also .

Good buyers should appear near the 2469 region where we would buy for a
bounce higher , use a 50 pt risk, Early Resistance is near 2556 then 2569
above that 2580 is likely to trade close over 2569 is friendly.

Stay Tuned...


Corn:

Early Support is near 291 below that 286 is where we would have buy
orders waiting
Risk a close under 284. Resistance is near 294 then 296 above that we
have a road block at 302 if Corn can close over 302 it should trade up to
315..
A close under 291 augurs for a test of 286 1/2

Spreaders can Buy Sept Corn and Selling Dec.


Trade accordingly.


July Wheat Position long at 416 3/4 Flash on Friday.. Risk a close
under 412 .5 for
three days in a row...

Support is near 416 then 412 3/4 where we would be a buyer after the
open, risk 6 cents. initially .. stay tuned. More Support is below at
404..
Resistance is near 422 then 428 above that 434 is likely then 448.
which is the likely target for a rally into “where it came from’ if this
happen we would sell our longs and wait..

Failure to move lower than 412.5 decisively is friendly...


July Oats.
This week Buy dips near 162 use a 5 cent risk. Resistance is near 167
above that
169 1/ . A close over 168 is friendly for a move 177.


The Softs...

July Cotton
Support is near 7155 where we would buy for a position, use a stop under
7075 basis the close. Resistance should appear near the 7345 region then
7495 where we would sell for a turn lower and risk a close over 7550.

Trade accordingly...

July Sugar
We see Support for July sugar near 1056 risk a close 1028 for three days
in a row..then stay tuned... Resistance is near the 1089 above that 1096
is likely. Resistance is near 1102 where we would sell for a turn and
risk 20 pts. or a close over 1101. Otherwise if you sell it at 1102 , but
if you do not get stopped out for 20 pts . Close the positions if the
Market close over 1101 cover and go on.

July ‘the Monster’ Coffee;
Resistance is near 219.55 where we would sell for a quick turn and risk
125 pts . If this trade works cover near 214.50 look for a pull back to
200 to 204.50 to cover...
The faster the better.. More resistance is near 221.90 then 222.60 to
222.90 offers resistance. Anything beyond the current highs indicates a
test of 232.60... as we approach the 1994 highs of 263.50..
Support is near 214.60 where we would buy for a bounce and risk a trade
under 213.40 ..
Below that 210 offers support as does 209.40.

We would Go long for the ‘pull’ into July near 199.65 if able risk a
close under 194.60 for three days in a row.

A close is friendly over 217.80 or 219.60 is Bullish for a test of
232....

Have your Steel ‘Cup’ ready


July Cocoa
Nearby support is in the 1346/1376 region. We would buy 1371 for a
turn and risk a close under 13.33 for three days in a row....
Resistance is near 1393 then 1425 where we would sell for a turn and risk
a close over 1462 for two days in a row...

Trade Accordingly..

July Orange Juice..
Early Support is near 7605 where buyers can go long for a quick bounce
and risk 300 pts.
or a close under 73.50. More Support is near 7260.
Resistance is near 7905 then 8070 where we would sell for a turn
towards the trend lower
and risk a close over 8225 for three days in a row.


The Lively Livestock Sector:


June Cattle Position Long from 6325 use a stop close under 64.45 for
three days in a row.

Support should appear near 6537 then 6520 and more is near 6447 where we
would buy for a bounce and risk 50 pts. Below that 6412 should hold.
Resistance is near 6562 then 6592. Above that 66.42 then 6670 should
trade ...

June Hogs

Resistance early next week is near 8447 then 8497 where we would sell
for quick turn lower and risk a close over 8522. Support is near 8362
where we would buy for a bounce , risk 50 pts and hold on a close over
8350. More Support is near 8250 then 8187 where we would Buy for the Pull
into June....Use a three day stop closing under 8037..

We want to refrain from pressing the short side of June hogs too much as
we enter may into June.

However we will gladly Sell July near 8527, risk a close over 8577 for
three days.
Support is near 8432 drop under augurs for a pullback into the 8347
region and then 8252.
Where we would buy for 2/3 day turn higher and risk 50 pts. A close under
8250 augurs for a test of 8130.

If that happens our Recommend Spread Long June hogs Short July Hogs
should be working nicely,.. We continue to advocate buying June and
Selling July hogs at current prices ...On Friday the Spread closed at 80
pts June under .July
We eventually see a move to 100 or more over ....This is one of the
Reasons we would rather not be short June.

We advise all our readers to sell August Hogs near these current prices
...
Friday the Settlement was 8260.. Resistance is near 8337 sell there if
able .Risk 50 pts , then a close over 8362 for three days in a row.
Support is near 8247..A close under 8240
indicates a test of 8050...

Trade accordingly.


May Bellies Shorts on PBK should be gone per Fridays work...

Early Support is near 8657 then 8485. Resistance is near 8880 then 8907

We will Focus our attention on July and August Bellies from now on...

July Bellies
Resistance is near 8962 sell there above that 9007 sell there also and
risk a close over 9160 for three days in a row.. A sharp rally to the
9160 region is a sale in our minds as is 9325...
Support is near 8857 where we would Buy only for a quick day trade
bounce Early in the week. bounce and risk 75 pts. Exit near 8987 if able.
Any Sustained break under 8850 indicates a test of 8712...Below that 8610
offers good support for now... if that fails we should see July Bellies
move lower towards the 7980 region...

‘Only Traders with ‘Ice Water in their Veins‘ should Trade Bellies.

Sell Rallies 1-2 days if able

August Pork Bellies
Support is near 8650 which should hold the break for now... Buy there for
a early in the week day trade bounce only and risk 50 pts..exit near
8762 if able...
Resistance is near 8792 failure to hold over augurs for a slip to the
8650 region..
A close under 8650 augurs for a test of 8580....

Sell Rallies

Trade Accordingly..


Bonds
June Bonds
Resistance is near 10110-11 then 110-20 sell there if able and risk 10
pts
Beyond that we would eagerly sell into the 111-20 region for a turn lower
risk a close over 112-07.

Go Short June Bonds on a close under 109-28 then stay tuned...

Support is 109-28 then 109-20 with good buyers near 108-20 below that
108-07 offers support and we would buy there using a stop under 107-24 as
protection...

Pick your Poison
SP 500

June SP500
For Early this week Aggressive traders can sell on a close under 809.80
but over 808 Look to cover against 802.90.

On the Downside we see support near 816.55 then 812.90 and 811.40 where
we would be a buyer for a turn higher and risk 200 pts. Any trade under
augurs for a pullback to 808.10
then 804.40 below that 802.90 offers support .. we would buy for a
bounce and risk 150 pts, below that 790.65 is likely..

Resistance is near 819.40 to 822.30 where we would sell for a turn and
risk 100pts
Above that 825.60 is where we suspect sellers are waiting..
A close over 822.40 augurs for a test 830 to 831.Beyond that We would
Sell near 842.40 risk 300 pts ...

Caution is urged on both sides.
Stay tuned..

Happy Trading

Bill