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Market Update for Friday, December 3, 2004
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Hot off the commodity presses to you!

Erich and Tom
http://www.supportandresistance.com

"Let me listen to me and not to them" - Gertrude Stein

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1: MARCH CORN
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CH5 O=203 HI=204 1/2 LO=202 1/2 CL=204

Corn's certainly taking it's time, isn't it? Thought
we would have seen a more aggressive move to the downside
especially given that beans and wheat both fell off nicely
this week...but that wasn't the case.

Small day today with slightly bullish overtones. Bringing
exit stops just above the high. If we do reverse we might
as well get out with at least a little profit.

First downside target is support at 194 3/4.

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2: MARCH COTTON
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CTH5 O=4375 HI=4390 LO=4330 CL=4362

Cotton never got low enough to break support and
find our short order. I'm standing aside this market
tomorrow as I don't like to trade cotton on Friday
but you could run with yesterday's plan if you like.

*SELL March Cotton at 4318
*Stop 4356
*Approximate Risk Exposure: $190 per contract
*Profit Target: 4194 (followed by 3937)
*Approximate Profit Potential: $620 per contract
*Risk/Reward Ratio: 3:1
*Degree of Risk: Moderate to HIGH

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3: JANUARY BEAN OIL
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BOF5 O=2041 HI=2048 LO=2020 CL=2021

Got our confirmation today as prices fell off to support
at 2020. This is a relatively solid support area and a
break below here could send prices lower to weekly
support at 1835.

If we do get filled short we've got a very strong resistance
line at 2060 to cover the trade above, but even so we have
a little more money at risk than usual for this market so
be careful if you decide to take this trade.

*SELL March Bean Oil at 2014
*Stop 2061
*Approximate Risk Exposure: $282 per contract
*Profit Target: 1841
*Approximate Profit Potential: $1038 per contract
*Risk/Reward Ratio: 3 1/2:1
*Degree of Risk: Moderate to HIGH

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4: FEBRUARY LIVE CATTLE
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LCG5 O=8845 HI=8855 LO=8755 CL=8800

Things look like they're going to continue to be choppy
for cattle tomorrow. Today the market found the 50%
retracement level and "slid" through it before recovering
by the close.

RSI is at a test point so I would like to see a rally
here tomorrow. That would get me looking to buy next
week, but nothing for tomorrow.

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5: MARCH COCOA
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CCH5 O=1675 HI=1677 LO=1632 CL=1652

Okay...close enough to 1680 to count for me. :-)
That makes 4 hits at/near 1680 in the last few weeks
and I think this could lead to lower prices tomorrow
as cocoa struggles with resistance.

If we saw a lower close today I would try to sell
from where we are, but the iffy close makes me a little
more cautious about the 1600 support on the way down.

Give me a confirmation of resistance tomorrow and I'll
be sure to sell on Monday...maybe.

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6: MARCH WHEAT
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WH5 O=298 HI=299 3/4 LO=295 CL=296 1/4

If you were a little more conservative with your stops
today you would have gotten stopped out near the high
(like I was). If you're still short this trade watch
out for a low open tomorrow as a signal that prices
might try to fade near the 291 1/4 support. If we do
get the low open you might want to consider bringing
down your exit stops ASAP - just in case.

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7: MARCH CANADIAN DOLLAR
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CDH5 O=8458 HI=8470 LO=8365 CL=8380

The Canadian Dollar opened right at our intended entry
(along with a bit of a gap) so I decided to sit out
opening range to see if the market would behave itself.
It did...but only long enough to fill my long position
before making a rather abrupt reversal and whipsawing
me out of my trade.

Not impressed to say the least.

On the bright side the reversal seems to suggest lower
rates on both the daily and weekly chart are in order.
The CD has been in an uptrend for some time now and might
be due for a retracement. RSI has also broken the trendline
however it is hovering near the 50% level, which is not
all that decisive.

We've got strong support at 8380, near today's close, as
well as additional support at 8340. It's a little on the
risky side but we could look at selling the CD below today's
low and covering above the 8380 resistance. First profit
target is support at 8185.

*SELL March Canadian Dollar at 8364
*Stop 8386
*Approximate Risk Exposure: $220 per contract
*Profit Target: 8187
*Approximate Profit Potential: $1770 per contract
*Risk/Reward Ratio: 8:1
*Degree of Risk: Moderate to HIGH

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8: DECEMBER SILVER
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SIZ4 O=809 HI=823.5 LO=791.5 CL=796

Bit of a reversal here today in silver. RSI is also
at a test point which would be a good place to sell
from; however we don't have enough structure at current
prices to put together a decent trade so I'll have to
pass. I'm pretty confident we'll see prices fall off
if they get below the low, but I'm just watching.

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9: DECEMBER '05 EURODOLLAR
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EDZ5 O=96.36 HI=96.405 LO=96.345 CL=96.395

A "bullish bearish day" in the Eurodollar today. If
we saw a lower close out of today's session I would
be getting serious about selling tomorrow; however the
higher close means the market is just not sure.

Standing aside for tomorrow.

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10: WILD CARD
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No wild card market for tomorrow.

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RECOMMENDED BROKER
==================================================

If you are looking for a broker that understands the
recommendations and could help you place them, call
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1-800-870-3327. You can also reach him via email at
Admin@OptimusFutures.com

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Market Alert is a publication of Traders Helping
Traders.net

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Copyright (c) 2003 Traders Helping Traders.net.

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RISK DISCLOSURE!

Trading commodity Futures and options on futures
involves significant risk. You must consult licensed
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ensure current prices, margin requirements and other
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In fact, there are frequently sharp differences
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For example, the ability to withstand losses or to
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