Corn:

March corn closed .01 cent higher on volume of 332,051 contracts. Open interest increased by 1238 contracts. Although I recently indicated that corn should now be traded from the long side based upon the market being above the key pivot point of 6.37, I am a reluctant bull. I still believe that the market is going to struggle at the 6.64 area basis March. I have completed an open interest analysis from January 26 through February 2 and will publish the results of that analysis in my weekend wrap. If long, have stops in place based upon risk tolerance and sound money management principles.

Soybeans:

March soybeans closed 1 3/4 cents higher on volume of 169,028 contracts. Open interest increased by 537 contracts. My bias remains to the downside and I fully expect a test of the 50 day moving average at 11.74.

Sugar #11:

March sugar closed 11 points lower on volume of 113,014 contracts. Open interest increased again on the down move of 2761 contracts. Stand aside and wait for the appropriate entry level on the long side.

Crude oil:

March crude oil closed lower by $1.25 on volume of 745, 272 contracts. Open interest increased by 19,444 contracts. The market continues to exhibit bearish open interest action and bearish price action. What is remarkable about crude oil’s lackluster performance, is there has been a ratcheting up of tensions by the United States and Israel against Iran. There have been credible news reports of a possible attack on Iran’s nuclear facilities, yet the impact upon the price of crude oil has been to the downside. Perhaps this will change if events start escalating. In any case, stand aside. 

Gasoline:

March gasoline closed lower by 2.33 cents on volume of 156, 535 contracts. Open interest increased by 5232 contracts. Stand aside and wait for a lower entry point on the long side.

Copper:

March copper closed 6.10 cents lower on volume of 60, 140 contracts. Open interest increased on the down move by 676 contracts. The market has been exhibiting bearish price and open interest action. Sell stops should be in place on any remaining positions based upon risk tolerance and sound money management principles.

Gold:

April gold closed higher by $9.90 on volume of 155,487 contracts. Open interest increased for the second day in a row of 3278 contracts. The market continues to be overbought relative to its 50, 150 and 200 day moving averages. Stand aside.

Silver:

March silver closed $.36 higher on volume of 62,120 contracts. Open interest increased by 1488 contracts. The market is overbought. Stand aside.

Euro:

The March euro closed 15 points lower on volume of 294,382 contracts. Open interest declined 3998 contracts. Stand aside.

S&P 500 E mini:

The March S&P 500 E mini closed higher by 3.00 points on very light volume of 1,358,032 contracts. Open interest declined by 30,097 contracts. The market has been working its way higher on fairly low volume. Protective long puts should be in place.

10 Year Treasury Notes:

March 10 year treasury notes closed six points higher on volume of 972, 228 contracts. Open interest increased by 1785 contracts. Sell stops should be in place on any remaining positions based upon risk tolerance and sound money management principles. Partial profits should have already been taken.