Thursday, February 24, 2005

Traders Helping Traders Daily Update for Wednesday February 23, 2005

The Big Weekend Edition Part One is posted at the following address:
http://www.supportandresistance.com/testdrive.html
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Erich's Daily Update for Wednesday, February 23, 2005
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The Subscribers got this on Tuesday. The Test Drive version is always posted a day later.

"Nothing can stop the man with the right mental attitude from achieving his goal." - Thomas Jefferson
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1: MAY CORN
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CK5 O-1 1/2 HI-7 LO-0 1/4 CL-5 1/4

Very strong session for corn today as the market blew through nearby resistance. Actually, the day after President's Day is traditionally bullish, but you never "really" know.

We're at a very important resistance level today which is pretty obvious to see. Hopefully we will see a stall today, which I think we might after today's strong performance, and give us another chance to enter.
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2: MAY COTTON
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CTK5 O-90 HI-47 LO-85 CL-43

Don't you hate opening gaps on days like today? We called cotton's move beautifully, with prices reaching our first profit target in a single session - alas, the opening gap kept us out of the trade.

As with corn, we're up against serious resistance. I'm hoping for a reaction so we can better time our re-entry.
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3: MAY BEAN OIL
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BOK5 O-68 HI-18 LO-55 CL-90

Huge day in Bean Oil today...but that seems to be today's theme in all the markets. In spite of the big gains we would have had a hard time catching this move with the big opening gap. Like the other markets we have to wait for prices to show us resistance before we can re-enter.
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4: ARPIL LIVE CATTLE
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LCJ5 O-50 HI-00 LO-30 CL-55

Well, what do you know? A market that didn't take off today! Actually cattle stalled on the support at 8530 and gives us a good line to sell from. Given the big sessions in some of the other markets I'm a little gun-shy about committing to a trade tomorrow. If prices behave themselves for one more day we'll jump all over selling this market.

Please, just be good one more day...pretty please?
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5: MAY COCOA
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Weak day in cocoa, although prices regained some of their losses before the close. Look for a testing of the price trendline and RSI trendline tomorrow. If we get this then we can easily buy the market on Thursday.
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6: MAY WHEAT
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WK5 O-06 1/4 HI-28 LO-06 CL-20 3/4

I think that's the biggest move I've seen wheat make in some time without actually going lock limit. Wow! What a session! Prices annihilated the nearby resistance level without even a slight hesitation. It should be no surprise that the high stopped at significant resistance so we're best sitting this one out tomorrow.
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7: MARCH CANADIAN DOLLAR
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CDH5 O-50 HI-70 LO-06 CL-66

This morning's opening gap would have put your trade on hold until opening range expired after which you could have entered your order, or if you wanted to be safe, scrub the trade entirely.

I put the trade on anyway and ended up getting filled in our long position. Happy about the high close, but I'm not happy about how close it is to our entry. Have to leave the stops where they are for one more session and keep our fingers and toes crossed for another strong day tomorrow.
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8: MARCH SILVER
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SIH5 O-8 HI-6 LO-6 CL-2

There's some bad data floating around the silver stat's today, but one thing's certain, we never got our fill as prices gapped the open and never got low enough to find our order. Too bad, since we definitely had the right idea here.
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9: DECEMBER EURODOLLAR
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EDZ5 O–.11 HI–.135 LO–.105 CL–.11

The small session in the ED doesn't inspire me to do too much with it tomorrow. I still like the market short; however we're hovering around some nasty support and RSI is getting a bit oversold.

If we see another hit on support tomorrow then I think we can sell with greater confidence.
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10: WILD CARD - APRIL LEAN HOGS
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LHJ5 O-20 HI-85 LO-00 CL-55

Hogs tested support today but never got low enough to find our order. We're at an RSI test point so you know something's going to happen tomorrow. If you wanted to be more aggressive on the trade sell it below today's low, otherwise stick with the weekend trade. If we see another higher session tomorrow then we'll get more serious about buying.
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