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There is no substitute for hard work and preparation on the road to achieving success in any endeavor, including successfully trading the markets.

- Jim Wyckoff

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January 5, 2010

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Today's Featured Article
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A New Year, A New Market Update
By Jim Wyckoff

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About the Author

Hello again, Fast Break readers. It's been my privilege through the years to provide the fine folks at VantagePoint and you with some of my market analysis and educational features. It's my mission when creating my Fast Break report to ensure that you will take away from the report at least one valuable trading "nugget." One that will enhance your own trading methodology, or provide you with a fresh clue on a market you are closely following.

In today's Fast Break issue, I'm going to provide you with a portion of my comprehensive "Daily Markets Update" email report from Monday afternoon.

LIVESTOCK: February live cattle closed down $0.77 at $85.40 today. Prices closed near the session low today after hitting a fresh seven-week high early on. Price action also scored a big and bearish "outside day" down on the daily bar chart today. Price action today also negated last Thursday's big upside "breakout" on the daily bar chart. The key "outside markets" were in a bullish posture for cattle today, as the U.S. dollar was lower, crude-oil prices were solidly higher, and the U.S. stock indexes were higher. The inability of the cattle market to score gains amid bullish outside markets is a bearish clue for cattle. The Bulls' next upside price objective is to push prices above solid technical resistance at last week's high of $86.80. The next downside technical objective for the Bears is pushing and closing prices below solid technical support at the October low of $84.25. First resistance is seen at $85.95 and then at $86.30. First support is seen at today's low of $85.35 and then at $85.00. Wyckoff's Market Rating: 5.0

February lean hogs closed up $0.30 at $65.90 today. Prices closed near mid-range today and did hit a fresh two-week high. The key "outside markets" were in a bullish posture for hogs today, as the U.S. dollar was lower, crude-oil prices were solidly higher, and the U.S. stock indexes were higher. The hog Bulls still have the overall near-term technical advantage. The next upside price objective for the Bulls is to push and close prices above solid chart resistance at the November high of $68.05. The next downside price objective for the Bears is pushing and closing prices below solid technical support at the December low of $63.70. First resistance is today's high of $66.45 and then at $67.00. First support is today's low of $65.50 and then at $65.00. Go here to see complimentary recent market forecasts for live cattle and lean hogs. Wyckoff's Market Rating: 6.5

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GRAINS: March corn futures closed up 2 1/2 cents at $4.17 today. Prices closed nearer the session low today after hitting a fresh 6.5-month high early on. Today's low-range close in corn is a bit worrisome for the Bulls, suggesting some tiring at higher price levels. However, the Bulls still maintain the overall near-term technical advantage. The Bulls' next upside price objective is to push and close prices above strong technical resistance at today's high of $4.26 1/4 a bushel. The next downside price objective for the Bears is to push and close prices below solid technical support at $3.90 a bushel. First resistance for March corn is seen at last week's high of $4.18 3/4 and then at $4.25. First support is seen at today's low of $4.13 1/4 and then at $4.10. Wyckoff's Market Rating: 6.5

March soybeans closed up 9 1/2 cents at $10.58 a bushel today. Prices closed nearer the session low today after hitting a fresh three-week high early on. Are you interested in trend forecasts for grains that are up to 86% accurate* for 1-3 days ahead? VantagePoint can provide you with that and more. Recent price action has seen the Bulls gain fresh upside near-term technical momentum, and they do have the overall near-term technical advantage. However, there is stiff overhead chart resistance at the December high of $10.84 a bushel. The next upside technical objective for the Bulls is pushing and closing March prices above solid technical resistance at $10.84. The next downside price objective for the Bears is pushing and closing prices below solid technical support at $10.27. First resistance for March soybeans is seen at today's high of $10.74 3/4 and then at $10.84. First support is seen at today's low of $10.50 and then at $10.40. Wyckoff's Market Rating: 6.0

March Chicago SRW wheat closed up 16 1/4 cents at $5.57 3/4 today. Prices closed nearer the session high and hit a fresh four-week high today. Fresh speculative and commodity fund buying was seen in wheat today, as well as short covering. Wheat Bulls now have the slight overall near-term technical advantage. The next downside price objective for the Bears is pushing and closing prices below solid technical support at $5.30. The Bulls' next upside price objective is to push and close March futures prices above solid technical resistance at $5.80 a bushel. First resistance is seen at today's high of $5.61 1/4 and then at $5.70. First support lies at $5.50 and then at today's low of $5.44. Wyckoff's Market Rating: 5.5

SOFTS: March sugar closed up 60 points at 27.55 cents today. Prices closed nearer the session high today and hit a fresh contract high and a fresh three-decade high. The sugar Bulls have solid upside near-term technical momentum and gained more today. The Bulls' next upside price objective is to push and close prices above psychological resistance at 30.00 cents. The Bears' next downside price objective is to push and close prices below solid technical support at last week's low of 26.56 cents. First resistance is seen at today's contract high of 27.83 cents and then at 28.00 cents. First support is seen at today's low of 27.00 cents and then at 26.75 cents. With VantagePoint, traders have the ability to forecast the sugar market with up to 86% accuracy* for the next 1-3 days. Wyckoff's Market Rating: 8.5

March coffee closed up 610 points at 142.05 cents today. Prices closed near the session high today and were supported on short covering and fresh speculative buying. Coffee Bulls had faded and needed to show more power soon--and they did that today. Coffee Bulls have the overall near-term technical advantage and regained upside momentum today. Coffee Bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 149.50 cents. The next downside price objective for the Bears is closing prices below solid technical support at last week's low of 135.80 cents a pound. First resistance is seen at today's high of 142.45 cents and then at 144.00 cents. First support is seen at 141.00 cents and then at 140.00 cents. Wyckoff's Market Rating: 6.0

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March cocoa closed down $23 at $3,266 today. Prices closed nearer the session low today. The key "outside markets" were in a bullish posture for cocoa today, as the U.S. dollar was lower, crude-oil prices were solidly higher, and the U.S. stock indexes were higher. Yet, the cocoa market sold off, which is a bearish clue for cocoa that suggests limited upside potential in the near term. Cocoa Bulls still have the overall technical advantage, but have faded and need to show fresh power soon. Prices are still in a seven-month-old uptrend on the daily bar chart. Did you miss this move? With VantagePoint traders use leading indicators to predict market trends, rather than follow them. The next upside price objective for the cocoa Bulls is to push and close prices above solid technical resistance at the October high of $3,439. The next downside price objective for the Bears is pushing and closing prices below solid technical support at the December low of $3,223. First resistance is seen at 3,300 and then at last week's high of $3,321. First support is today's low of $3,245 and then at $3,223. Wyckoff's Market Rating: 6.0

March cotton closed up 40 points at 76.00 cents today. Prices closed nearer the session low after hitting a fresh 15-month high early on. The Bulls have the solid near-term technical advantage. The next downside price objective for the cotton Bears is to produce a close below solid technical support at 73.35 cents. The next upside price objective for the Bulls is to produce a close above solid technical resistance at 78.00 cents. First resistance is seen at 76.50 cents and then at today's high of 76.77. First support is seen at today's low of 75.67 cents and then at 75.37 cents. Wyckoff's Market Rating: 8.0

March orange juice closed up 470 points at $1.3375 today. Prices closed nearer the session low today after posting sharp gains early on. A cold snap has descended on Florida citrus regions and will remain there for a few days. This will cause high anxiety for growers there and high volatility in futures prices, as we've seen recently. FCOJ Bulls have the near-term technical advantage. The next downside technical objective for the FCOJ Bears is to produce a close below solid technical support at last week's low of $1.2800. The next upside price objective for the FCOJ Bulls is pushing and closing prices above solid technical resistance at the December high of $1.4250. First resistance is seen at $1.3500 and then at $1.3700. First support is seen at today's low of $1.3200 and then at $1.3000. Wyckoff's Market Rating: 7.5

METALS: February gold futures closed up $23.60 at $1,119.80 today. Prices closed near the session high and hit a two-week high today, supported by short covering and a lower U.S. dollar. Gold market Bulls did regain some fresh upside near-term technical momentum today, but need to show that important follow-through strength to keep it. The Bulls' next upside price objective is to produce a close above solid technical resistance at the last reaction high on the daily chart, at $1,142.90. The Bears' next downside price objective is closing prices below solid technical support at the December low of $1,075.20. First resistance is seen at today's high of $1,124.60 and then at $1,130.00. Support is seen at $1,114.50 and then at $1,110.00. Go here to see complimentary recent forecasts for the gold market. Wyckoff's Market Rating: 5.5

ENERGIES: February crude oil closed up $2.21 at $81.57 a barrel today. Prices closed near the session high and hit a fresh seven-week high today. Crude was supported by a lower U.S. dollar and a big cold snap over much of the U.S. The Bulls have gained solid upside near-term technical momentum recently. Prices are in a steep three-week-old uptrend on the daily bar chart. However, prices are now nearing levels that in late October stopped the uptrend. The next upside price objective for the Bulls is producing a close above solid technical resistance at the October high of $83.19 a barrel. The next downside price objective for the crude-oil Bears is to produce a close below solid technical support at $78.00. First resistance is seen at today's high of $81.68 and then at $82.00. First support is seen at $81.00 and then at $80.00. Wyckoff's Market Rating: 7.5

About the Author
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Jim Wyckoff is the senior market analyst with TraderPlanet.com . TraderPlanet.com, a Tampa Bay, Fla.-based financial social networking site, provides individual traders of all skill levels a one-stop destination for financial information and trading tools. TraderPlanet.com is the only financial social networking site that offers its members a full suite of market data feeds, advanced technical analysis tools and exclusive analyst commentary across asset classes, while enabling members to give back to the broader world community through gift-giving to charitable causes. Designed to level the playing field between institutional and individual traders, TraderPlanet.com's fully interactive, multi-media rich platform is designed to promote the free-flow exchange of ideas through questions, answers and comments designed to improve trading strategies and investment performance.

Jim has spent nearly 25 years involved with the stock, financial and commodity markets. He was a financial journalist with what is now the Dow Jones Newswires service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another. Not long after he began his career in financial/commodity market journalism, Jim began studying technical analysis. By studying chart patterns and other technical indicators, Jim realized the playing field could be leveled between the "professional insiders" in the markets, and traders/analysts like himself. As a proponent of Intermarket Analysis, VantagePoint Intermarket Analysis Software is one of the tools in Jim's tool-box.

Special Message from Our Author
----------

Get up to 86 Accurate* Market Forecasts for over 70 Futures Markets!

With VantagePoint Intermarket Analysis Software you'll have:

  • Tomorrow's forecasted trading range
  • Five predictive technical indicators
  • Market analysis from a big picture perspective
  • The ability to quickly and easily identify potential trading opportunities in over 70 Futures markets

Go here for complimentary forecasts!

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Disclaimer: The Commodity Futures Trading Commission has asked us to also advise you that trading futures is not without risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders! Opinions expressed by Fast Break authors are not those of FutureSource.