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  FuturesCom Morning Comments
  January 25th 1998
 

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.

Wed , January 27, 1998
5:00 AM

                       On the Frenzied Forex Front

March J-Yen
Nearby support is at 7997 and 7954 below that  7939  Below that  that 7892 to 7864 should act as Support. If that fails traders should buy at 7718  risk a close under 7657 for two days in a row. Resistance is near  8000 and 8029 beyond that 8089 and 8119 to 8136.  Sell Short at 8194 for a turn lower, risk a close over 8209 for three days in a row.

Trade Accordingly

March Swiss Franc Recommended Position long at 6783 & 6906
Support should appear at 6839 below that 6836 to 6815 should hold,  traders should have buy orders waiting to Buy at 6836, risk  a close under 6809. Resistance begins at 6880  and 6915 to 6930  Beyond that a test of 6980/ 6990 to 7003 then 7023 to 7029 is likely.
A close over 7023 augurs for a Thrust to 7074. A  close over 7088 augurs for a 'pop' to 7123 and most likely the 7143 to 7170 region where resistance  should appear. A close over 7170 indicates a pop to 7243. Sell there at 7242 for position, risk a close  over 7257 for two days in a row

March British: Recommended  Position long at 165.50
Support is at 16260 and 161.90  Resistance is near 163.64 and 164.20   A close over 163.64 friendly for a rally  to 165.50

March D-Mark Recommended Position long at 5588
Early support is at 5540 and 5531  Below that support should appear near 5504 where day traders can buy at 5505 for a bounce, risk a trade under  5488. Nearby Resistance is at  5577to 5581  then 5631and 5646, beyond that  5678 and  5716 to 5729  A close over 5716 augurs for a pop to 5792 / 5805. Traders should sell at 5834 for a quick turn lower , stay tuned for a stop.  In addition Good sellers  should appear near  5860, sell at 5860 for a position risk a close over 5912 for two days in a row.

Trade Accordingly

March Canadian Dollar  Recommended Position Long at 7002 and 6909
Support is near 6836 and it should hold.
Resistance is near 6890. A close over 6890 augurs for a test of 6919

Trade Accordingly...

                                     Precious Metals
April Gold Recommended Position long at 299
Support is near 298.5  and 294  Below that 287 offers a buying region. Resistance is 303.9 then 307.7  and  309.3 , traders can exit /sell short at 308 then  risk / go back  long on a close over 310. A close  over 310  augurs for a rally back to 317 to 320 Beyond that 330 is likely to be tested.

March Copper
Support is at 7950 and 7865 , traders should buy at 7865 , risk a close under 7820 for two days in a row. Below that 7790 then7750 and 7610 to 7590  should stop the decline , go long March Copper at 7590  for a turn higher , risk a close under 7510.
Resistance is at  8150. beyond that 8190 and 8350, a close over 8225 indicates a rally back to 8540  Above that traders should sell at 8850 risk a close over 8870 for three days in a row.

A close under 8065 is negative.

April Platinum
support is near 377 , buy at 380 a close under 373 for three days in a row. Below that should appear  near 374 and 369. Buy at 369 for a 2- day bounce , risk  a close under 358. Resistance is 394 and 397. Beyond that 407 should trade. With a possible ‘touch’ of 413 or higher  Traders should sell at 423 , risk a close over 425 for three days in a row. Beyond that 440 and 460 should trade.

Trade Accordingly
 
March Silver
Support is at 587 and 573.   Traders should Buy March Silver at 567.5 , risk a close under 544. Below 567.5, buy at 558 for a bounce, risk 10 cents.
Resistance is near 613. The close over 610 is friendly for a test of 637/ 640 then 671, sell at 671 risk a close over 677  for two days in a row.

Buy Dips

                             The Exciting Energies

March Crude Recommended Position Long at 1656
Support is at 1675, and 1650 Resistance should appear near 1700 and 1725. Above that 1763 offers resistance

March Unleaded Gas 
Early support is near 5175 and 5070. Resistance is near 5270 and 5370

March Heating Oil 
Support is near 4715 and  4580 . Resistance is near 4830 and 4910
 

                              The ‘Grande’ Grains

March Beans: Recommended position Long at 667.
Early support is near 674. Below that  Go long at 669 for a bounce , risk 10 cents.  Beneath 669 support should appear at 663.
Resistance is near 686. A close over 685 is bullish for a trade to 691. Beyond 692 , 704 offers resistance ,traders can sell at 703 for a quick turn lower, risk a close over 711 1/2 for  three days in a row and stay tuned.

Trade Accordingly

March Soybean Meal Recommended Position Long at 195.50
Support should appear at 196.50 and 195.50below that  Buy at 192.6  risk a close under 188 for three days in a row. Resistance is near 201.5 , beyond that 209 offers resistance sell at 209, risk a close over 213.5 for two days in a row.

Go long March Meal using a  195.5 Buy stop to enter.

March Soybean Oil
Early support is at 2557 below that  Buy at 2557 , risk a close under 2510 for three days in a row. Beneath the 2510 region  2469 offers support as does 2436 , buy at 2461  risk a close under 2419.
Resistance is near  2612 to 2624. Above that sell at 2663 for a turn lower , risk 100 pts.

March Corn
Support is at 277 , below that 273 to 271 , traders should begin purchases of March corn at  273 3/4. risk a close under 271 for three days in a row.
Resistance is near 281 1/2 and 284 , a close over 284 augurs for a ‘pop’ to 292 and beyond

March Wheat
Supp0ort is at 340 and 331 3/4. Traders should Buy March Wheat at 331 3/4  and hold .
Beneath that 329 to 323 should be considered a buying region. Go long at 326, and hold.
Resistance is near 346, beyond that  353 should trade. A close over  355 1/2 indicates a thrust to 367

Trade Accordingly

                               The Satisfying Softs

March Cotton  Recommended Position long at 6590

Support is at 6479, below that  buy at 6417 risk 100 pts. Resistance is at 6529 and 6597 to 6605 . A close over 6605 augurs for a test of 6675 and 6705. .

A close over 6529 is friendly.

Trade accordingly.

March Sugar  Recommended Position Long at 1203 and 1169
Support  near 1116 and 1101 , below that 1096 should hold. Buy at 1101 risk a close under 1096 for three days in a row. Resistance is 1128 and 1143.  A  close over 1127 augurs for a 'pop' to 1149 then 1167.

March Coffee Recommended Position long at 178.00
Early support is at 173.10 and 172.90 to 172.75, under that 170.80 then 167.70 to 165.50 should hold. Traders should buy at 164.20 , risk a close under 162.50 for two days in a row. Beneath that a decline to 158.20 should be considered a buying opportunity. Buy at 157.60 , risk a close under 153.50 . Beneath that 150.50 to 148.10 offer support.
On the Upside, resistance is near  175.25 and 179.90 and 180.80 to 182.20 , beyond that 185.90. Above that 190.20 to 190.90 Traders should sell at 194.60 risk a close over 195.30. for two days in a row. More sellers should appear near 198.20 and 199.60

When Trading Coffee, one should keep a ‘Steel Cup’ handy.

Trade accordingly
 

March Cocoa Recommended Position Short at 1576
Early resistance is located at 1609 and 1615 , beyond that 1642 and 1677 Traders should sell at  1677 , risk a close over 1689 for two days in a row. The 1680 / 1696 region offers more sellers, above that 1713 is likely to trade and 1737 should cap a rally.   Support is near 1582,  Below that support should appear near 1559 and the 1532 region, with  1517 to 1496  beneath that.  A close under 1517 augurs for a slip to 1484., below that go long at 1459 and risk a close under 1446 for two days in a row.
 
 

                        The Lively Livestock

Feb. Cattle Recommended Position, long at 6622
Support is near  the 6592 / 6577 region. Below that  6492 should hold.
Early Sellers should appear near 6637 and 6712  with 6782 beyond that.
A close over 6642 is friendly for a  test of the 6712 region..

April Live Cattle Recommended position long at 7170,7150,7130 and 3 at 6845
Support is 6925 below that 6892 . Beneath that 6850 and 6777. Resistance is near  7000 and 7037 a close over 7005 augurs for a test of  and  7072 to 7087

Trade Accordingly.

Feb. Hogs
Support is near  5802, below that 5712 should stop any decline.
Near Term Resistance is near  5865 and 5902

Recommended Spread Position, Long April Short June Hogs, 5 at 817 and 5 at 757
Hold

April Hogs
Resistance is at 5887 and 5902 , beyond that 5987. A close over 6035 augurs for a trade to 6092. Support is near  5787, buy at 5787 , risk a close under 5672 for three days in a row. Additionally traders should be prepared to buy at 5657 if given the chance. Risk 100 pts.

Feb. Bellies Recommended Position Long at 5622 , 3 at 5447 , 4 at  5090,  4 at 4650
Early support is at 5052 and  4987 then 4945 to 4917. Below that 4857  offers good support. Resistance is near 5160. Beyond that 5247 to 5272 offers a selling region. However, a close over 5270 augurs for a test of  5427 where sellers should appear.

Friendly, Buy Dips and stay tuned.
 

             The Sensational Stock and Bond Markets
 

March Bonds
Near Term support  is at 121-00 and 120-08  Resistance is at 121-08 and 121-18 , sell at 121-21 risk a close over  122-10 .
Beyond that a trade to 123-09 is likely , sell at 123-09 and hold.
 

March SP500  Recommended Positions, short at 954.20, 958.40 and  970.50
On the Downside;  Support is near  964.10 and 962.50  under that 957.00 and 955.00 to 954.20 offer support . a close under 962.50 augurs for a test of 957 then 955 , below that  a test of 952.60 is likely.
Beneath that 947.60 and  944.40 to 942.90 offer support , below that 938.80 , must hold basis the close. If the 938.80 region or 934.70 level fails  a decline to 931.60 will likely take place.  Beneath that 925.40 then 923.60 to 922.90 offer support. A close under 923.60 augurs for a test of  915.60 to 914.00  A close under 914.00  indicates a slip to 910.00 then 906.40/906.00 and 904.40. However a close under 904.40 augurs for a test 896.60 to 893.40 with 892.10 below that. Traders can Buy at 892.10 for a bounce, stay tuned for the stop. If that fails a slip to the 884.90 / 881 region is likely, Below that 877.70 then 876.20  to 874.60  offer support as does  the  868.30 / 866.80 region. Below that 860.30 then 858.90  to 856.00 should bring out a few buyers. Traders can Buy at 858.10, again stay tuned for a stop Failure there indicates  a decline to 842.90 and 840.60 / 839.10 region . Below  that 831.40/830 is likely to trade with 822.30 to 819.40 under that. Below that Buy  at 813.40. Under that buy at 804.40  and hold.
On the Upside Resistance should appear near  969.50 region with 970.60 / 971.30 and 973.70 above that. Which  should cap this rally. If not  982.10 to 983.70 and 986.20 all offer resistance, sell at 986.20, stay Tuned for the stop. Beyond  that 987.70 should cap a rally.

Trade Accordingly and stay tuned for new trades and analysis designed
to take advantage of moves in either direction.

The Dow Jones Industrial Average(cash)
Initially 7684  must hold basis the close if not a dip to the 7596 region then  7555 region is likely. Below that  7513 to 7493 with  7486  basis the close should be considered critical.  Below that  7462/ 7457 offers some support. A close under  7462 augurs for a test of 7428 and 7414  which should bring out a few buyers . If not a decline to 7342 and the 7279 region is likely.  A close under  7242  is negative for a decline to 7170 , under that 7088 and 7003 should stop the break. If not a test of 6954 is likely.

Resistance is near 7719 then  7746 and  7777  region. Beyond that  a  test of  7809 and  7840 to 7854 that  should encourage traders. A close over 7880 augurs for a test of  7920 and  7934 to 7954. Beyond that  7969 and the  8005 to 8029/ 8044 should cap a rally
 

Happy Trading

Bill

Tuesday  January 27, 1998
06:47 PM

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