Corn:

Corn closed 10 1/4 cents higher on volume of 389,520 contracts. Open interest declined by 5157 contracts. As mentioned in earlier posts, corn needs to close above 636 1/2 and the low for the day needs to be at least 636 1/2 for the rally to have legs.

Soybeans:

March soybeans closed higher by 2 1/2 cents on volume of 163,325 contracts. Open interest increased by 2098 contracts. The market is struggling at the upper end of the range and looks weak.

Crude Oil:

March crude oil closed down $.63 on low volume of 458,410 contracts. Open interest increased by 2601 contracts. For the last three days crude oil hasn’t been able to make a high above 100.91. The low volume and open interest action indicates that there is little enthusiasm on the part of longs and shorts.

Copper:

March copper closed up 9/10 of a cent on volume of 58,611 contracts. Open interest increased by 1528 contracts. Market continues to act well, but have stops in place based upon your risk tolerance. A setback is overdue.

Gold:

February gold closed lower by $13.80 on volume of 173,355 contracts. Open interest declined by 9610 contracts. During the past three trading sessions, open interest in gold has declined by 14, 288 contracts, nearly wiping out the previous three days gains in open interest. Stand aside.

Silver:

March silver closed $.29 lower on volume of 30,643 contracts. Open interest declined by just 5 contracts. The market is giving signs that much of the selling has already been done. For the rally to have legs, the daily low in silver has to be at least 32.17 with rising volume and open interest.

Sugar:

March sugar closed down seven points on volume of 101,910 contracts. Open interest declined by 2274 contracts. The market still looks good and is entitled to a setback. If a setback occurs, and the speculator wants to enter a long position, the stop should be placed at 22.82 basis March.

Euro:

The March euro closed up five points on volume of 308,549 contracts. Open interest increased by 4823 contracts. When the euro was at its lows in the 1.26 area, I expressed my opinion that shorts should be covered, and that speculators should stand aside. Stand aside and wait until more speculators have covered shorts.

S&P 500 E Mini:

March S&P 500 E mini closed essentially unchanged on volume of 1,489,307 contracts. Open interest increased by 4081 contracts. The S&P 500 had net advances of only 21 issues, and volume was very light. New 52-week highs dropped from  219 on January 23, to 136 on January 24. The market is in a topping process and protective puts should be in place.

10 Year Treasury Notes:

March treasury notes closed up by 3 1/2 points on volume of 981,738 contracts. Open interest increased by 19,024 contracts. This is the third day in a row that open interest has increased. The market needs to close below 129-20 before I would become negative on this market. However, stops should be in place based upon your risk tolerance.