Jim Wyckoff's Top Market Ideas--July 25, 2008
September feeder cattle futures a selling opportunity on more weakness. September feeder cattle futures on Friday closed lower, hit a fresh five-week low and closed at a bearish weekly low close. Price action Friday also saw what could be the beginning of a bearish downside "breakout" from a bearish descending triangle pattern on the daily bar chart. A close below solid technical support at Friday's low of $111.20 would be a good selling opportunity. The downside objective would be $107.00, or below. Solid overhead technical resistance, for which to place a protective buy stop just above, is located at $113.00. Seasonality studies do show cattle futures prices peaking out in the August timeframe and then trending lower into the December timeframe.

December gold futures a selling opportunity on more weakness. See on the daily bar chart for December gold futures that prices have backed well down from the recent high. Bulls are fading, technically. An uptrend line drawn from the late-June low has been penetrated on the downside and negated. See, too, at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator has recently produced a bearish line crossover signal, whereby the thick blue MACD line crossed below the thin red "trigger" line of the indicator. Recent MACD line crossovers have been good buy and sell signals in gold. A close below solid technical support at $925.00 in December gold would penetrate on the downside an uptrend line drawn from the early-June low and would then be a good selling opportunity. The downside objective would be $860.00, or below. Solid overhead technical resistance, for which to place a protective buy stop just above, is located at $950.00.

 
December soybean meal futures a selling opportunity on more price weakness. December soybean meal futures have backed well down from the recent contract high. Prices this week hit a fresh six-week low. A bearish double-top reversal pattern did form on the daily bar chart during early July. A close below solid technical support at this week's low of $353.30 would produce more technical damage and would then become a good selling opportunity. The downside objective would be $300.00, or below. Solid overhead technical resistance, for which to place a protective buy stop just above, is located at $375.00. Seasonality studies do show soybean meal futures prices trending lower into the November timeframe.

 
 

 
 

 
 

 
 

 

 

 

 
 

Disclaimer:   There is a high risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing in this newsletter is intended to be a trading recommendation for you to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use this information.