Would-be bottom-pickers in the recently beaten-up commodity markets beware. Bottom-pickers are usually not successful. Better to wait for a solid bullish technical signal for market entry on the long side of a beaten up market.

- Jim Wyckoff

Go Beyond the Fundamentals with this COMPLIMENTARY CD!

VantagePoint Trading Software has been the trading tool of choice among successful traders for close to 20 years. In today's volatile market, intermarket analysis and leading indicators will give you the edge needed to be successful on a consistent basis. As a special offer you can receive complimentary forecasts for over 600 world markets and a complimentary eBook. Go here now to receive both at no charge and begin your journey to trading success!

Hello again Fast Break readers. It's my pleasure to be able to show you some of my latest work. In today's issue of Fast Break, I'm showing you a portion of my latest Daily Markets Update email report from Tuesday afternoon. My daily email reports provide a quick recap of the day's market price action, including key technical developments and support and resistance levels. Also, I provide my exclusive "Wyckoff's Market Rating to each market." An explanation of my rating system is at the end of this feature. -- Jim Wyckoff

Following are Tuesday's significant developments in selected U.S. futures markets. (My entire report is too long for this venue.)

LIVESTOCK: October live cattle closed down $0.65 at $106.85 Tuesday. Prices closed near the session low on more profit-taking pressure. The bulls still have the slight near-term technical advantage and their next upside price objective is to push and close prices above solid resistance at this week's high of $108.25. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $106.00. First resistance is seen at Tuesday's high of $107.57 and then at $108.00. First support is seen at $106.65 and then at $106.00. Wyckoff's Market Rating: 5.5.

October lean hogs closed down $0.35 at $74.60 Tuesday. Prices closed near the session low after hitting a fresh six-week high early on. Bulls still have the solid near-term technical advantage as a five-week-old uptrend is in place on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $76.00. The next downside price objective for the bears is pushing prices and closing below solid technical support at $73.00. First resistance is seen at $75.00 and then at $75.50. First support is seen at Tuesday's low of $74.40 and then at $74.00. Wyckoff's Market Rating: 7.5

GRAINS: December corn futures closed down 11 3/4 cents at $5.43 3/4 Tuesday. Prices closed nearer the session low and hit another fresh 4.5-month low Tuesday amid still- bearish "outside markets"--sharply lower crude oil and a stronger U.S. dollar--and still-non-threatening weather in the Corn Belt. Informa Economics also came out with a bearish U.S. corn production estimate Tuesday. To find out how these and other markets are interrelated visit www.tradertech.com. Serious chart damage has occurred recently to suggest a major market top is in place and that the path of least resistance in corn will remain sideways to lower for at least the near term. The bulls' next upside price objective is to push and close prices above solid technical resistance at this week's high of $5.84 1/2. The next downside price objective for the bears is to push and close prices below solid technical support at the March low of $5.13 1/4. First resistance for December corn is seen at $5.50 and then at $5.62 3/4. First support is seen at Tuesday's low of $5.36 1/4 and then at $5.25. Wyckoff's Market Rating: 3.5.

November soybeans closed down 25 1/4 cents at $12.69 3/4 Tuesday. Prices closed nearer the session low and hit a fresh 2.5-month low again Tuesday. Bearish "outside markets" again Tuesday--sharply lower crude oil prices and a stronger U.S. dollar--and non-threatening weather forecasts for the Corn Belt pressured beans Tuesday. Serious near-term chart damage has occurred this week. Prices are in a steep four-week-old downtrend on the daily bar chart. Technical odds are high that at least a near-term market top is now in place. The next upside price objective for the bean bulls is to push and close prices above solid technical resistance at this week's high of $13.61 a bushel. The next downside price objective for the bears is pushing and closing prices below solid technical support at Tuesday's low of $12.51. First resistance for November soybeans is seen at $12.85 and then at $13.00. First support is seen at Tuesday's low of $12.51 and then at $12.25. Wyckoff's Market Rating: 4.0.

December Chicago SRW wheat closed up 18 3/4 cents at $8.02 1/2 Tuesday. Prices closed near mid-range after hitting a fresh nine-week low early on. Prices did score a bullish "outside day" up on the daily bar chart Tuesday. Short covering and some fresh U.S. export demand boosted the market Tuesday. But the bears still have the overall near-term technical advantage in wheat. To find out how wheat and other markets are interrelated visit www.tradertech.com. Bearish "outside markets"--sharply lower crude oil prices and a stronger U.S. dollar--limited the upside in wheat Tuesday. A six-week-old downtrend is still in place on the daily bar chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at the May low of $7.68. Bulls' next upside price objective is to push and close December futures prices above solid technical resistance at Tuesday's high of $8.31 1/2 a bushel. First resistance is seen at $8.10 and then at $8.20. First support lies at $7.98 and then at $7.80. Wyckoff's Market Rating: 3.0.

SOFTS: October sugar closed up 47 points at 13.89 cents Tuesday. Prices closed nearer the session high as trading has become choppy at higher price levels, which does favor the bears. However, the bears do have the near-term technical advantage and gained more momentum Tuesday. Bulls' next upside price objective is to push and close prices above solid technical resistance at last week's high of 14.69 cents. Bears' next downside price objective is to push and close prices below solid technical support at 13.00 cents. First resistance is seen at Tuesday's high of 14.03 cents and then at the July high of 14.35 cents. First support is seen at 13.75 cents and then at 13.50 cents. Wyckoff's Market Rating: 6.5.

September coffee closed up 345 points at 140.30 cents Tuesday. Prices closed nearer the session high Tuesday and hit a fresh three-week high. Short covering was featured Tuesday. For more information on coffee and other markets visit www.TraderQuotes.com. Coffee bulls and bears are back on a level near-term technical playing field. Coffee bulls' next upside price objective is pushing and closing prices above solid technical resistance at 145.00 cents. The next downside price objective for the bears is closing prices below solid support at the July low of 133.95 cents a pound. First support is seen at 139.00 cents and then at 138.00 cents. First resistance is seen at Tuesday's high of 142.25 cents and then at the May high of 144.30 cents. Wyckoff's Market Rating: 5.0

September cocoa closed down $71 at $2,712 Tuesday. Prices closed nearer the session low Tuesday and hit another fresh nine-week low amid bearish "outside markets"--sharply lower crude oil prices and a stronger U.S. dollar again Tuesday. Serious near term chart damage has been inflicted this week. Prices are in a five-week-old downtrend on the daily bar chart. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,865. The next downside price objective for the bears is closing prices below solid technical support at $2,600. First resistance is seen at $2,750 and then at Tuesday's high of $2,776. First support is seen at Tuesday's low of $2,693 and then at $2,650. Wyckoff's Market Rating: 3.5.

December cotton closed down 10 points at 69.03 cents Tuesday. Prices closed nearer the session low and hit another fresh 11-month low Tuesday. Serious near-term chart damage has been inflicted recently. Bears have the solid overall near-term technical advantage. The next downside price objective for the bears is to produce a close below strong technical support at 65.00 cents. To find out how cotton and other markets are interrelated visit www.tradertech.com. The next upside price objective for the bulls is to produce a close above solid chart resistance at this week's high of 72.38 cents. First resistance is seen at 70.00 cents and then at 71.00 cents. First support is seen at Tuesday's low of 68.20 cents and then at 67.50 cents. Wyckoff's Market Rating: 2.5.

September orange juice closed down 275 points at $.9815. Prices closed near mid-range and hit another fresh contract low Tuesday. Serious chart damage has been inflicted recently. Bears have the solid near-term technical advantage. However, the market is still short-term oversold, technically, and due for a corrective bounce very soon. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.0500. The next downside price objective for the OJ bears is pushing and closing prices below solid technical support at Tuesday's contract low of $.9610. First resistance is seen at 1.0000 and then at Tuesday's high of $1.0160. First support is seen at Tuesday's contract low of $.9610 and then at $.9500. Wyckoff's Market Rating: 1.0.

METALS: December gold futures closed down $23.90 at $884.00 Tuesday. Prices closed near the session low and hit a fresh seven-week low Tuesday. Serious near-term chart damage has been inflicted recently. Bearish "outside markets"--sharply lower crude oil and a stronger U.S. dollar sunk gold again Tuesday. Prices are in a steep three-week-old downtrend on the daily bar chart. To find out how gold futures and other markets are interrelated visit www.tradertech.com. Bears' next downside price objective is closing prices below solid technical support at the June low of $869.00. Gold bulls' next upside price objective is to produce a close above solid technical resistance at $900.00. First resistance is seen at $880.00 and then at $875.00. Support is seen at $890.00 and then at $895.00. Wyckoff's Market Rating: 3.0.

December silver futures closed down 66.0 cents at $16.62 an ounce Tuesday. Prices closed near the session low Tuesday and hit a fresh seven-week low. Bears have gained solid downside technical momentum this week. For more information on silver futures and other markets visit www.TraderQuotes.com. A steep three-week-old downtrend is back in place on the daily bar chart. Bulls' next upside price objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price objective for the bears is closing prices below solid technical support at the May low of $16.28. First resistance is seen at $16.50 and then at $17.00. Next support is seen at Tuesday's low of $16.625 and then at the June low of $16.54. Wyckoff's Market Rating: 3.0.

Understanding "Wyckoff's Market Rating System"
Jim Wyckoff on the Markets

My Daily Markets Update displays the exclusive "Wyckoff's Market Rating System" for each market. I distill risk, probability, technical indicators, fundamental analysis and many other factors in determining these ratings. This simple system can be your quick key to how all the markets are trending (if they are) on a longer-term and shorter-term basis.

How it Works

Wyckoff's Market Rating System is based on a scale of 1 to 10, with 1 being the most bearish market rating and 10 being the most bullish market rating. The number 5 would be a neutral rating. And it is not uncommon to see fractions used - like 1.5, 3.5, etc. - if conditions warrant.

It's important to note that just because a market is rated as very bullish (8 or above), it does not mean I want to establish a fresh long position in that market. A high rating likely means a market has been trending higher for a sustained period of time, or has already seen a quick, powerful move that could mean a "correction" is near. An 8 or higher bull market is likely a more mature one - with the risks being higher for steeper setbacks and a more volatile topping process.

Similarly, a market rated as very bearish (2 or below) does not indicate you should rush out to establish a fresh short position and sell a market. It means a market has likely been in a longer-term downtrend, or has seen a quick and powerful down-move, and is at or near its contract low. It is a more mature bear market that has a higher risk of a corrective bounce higher, or even change in trend to sideways to higher.

Markets rated 4 to 6 are in the middle, and these are the markets I watch most closely, on a shorter-term basis, for trading opportunities. They are usually characterized by more of a "sideways" and choppier trading range on the daily chart, or have just backed well off from a recent up-trend high or have moved well up from a recent downtrend low.

Importantly, markets that have been in sideways trading ranges for a while - i.e., non-trending and then move to either a rating of 5.5 to 6.5 on an upside price move, or to 4.5 to 3.5 on a downside move - are the most critical to monitor on a daily chart basis. It's at these ratings levels that most trading "set ups" occur, based on my trading philosophy and experience.  It's at these ratings which are just above or just below neutral (5) that most "breakouts" from trading ranges occur. But remember, the market has to have been trading generally (but not always) sideways beforehand, for the best trading opportunities to present themselves.

Being a conservative trader, I like to trade markets that are just beginning to establish a solid trend. The risk for high volatility (and bigger losses) is lower when a trend is in its early stages, as opposed to when a trend is mature and higher volatility is more likely. Wyckoff's Market Rating System helps me determine the stages of a market trend.

Here's an important reminder. My Wyckoff's Market Rating System is not and should not be used as a "stand-alone" trading system. But it can be a valuable trading tool in your "Trading Toolbox."

VantagePoint Trading Software has been the trading tool of choice among successful traders for close to 20 years. In today's volatile market, intermarket analysis and leading indicators will give you the edge needed to be successful on a consistent basis. As a special offer you can receive complimentary forecasts for over 600 world markets and a complimentary eBook. Go here now to receive both at no charge and begin your journey to trading success!