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Corn:

March corn lost 2. 75 cents on heavy volume of 432,069 contracts. Total open interest declined by 12,064 contracts, which relative to volume is average. The March contract accounted for loss of 46,655 of open interest. As this report is being compiled on February 8  the March contract is trading 3.50 cents lower and has made a new low for the move of 3.62 1/2, the lowest print since 3.56 made on January 15. As we pointed out in the weekend report, March corn is headed for a short-term sell signal. This will occur when the daily high is below OIA’s key pivot point for February 8 of 3.63 1/4. We have no recommendation.

Soybeans: March soybeans will generate a short-term sell signal on February 8, which reverses the January 19 short-term buy signal.

March soybeans lost 7.00 cents on volume of 266,516 contracts. Total open interest declined by 2,672 contracts, which relative to volume is approximately 50% below average. The March contract lost 17,524 of open interest, which means there were sufficient open interest increases in the forward months to offset a good portion of the decline in the March contract. Friday’s action was bearish. As this report is being compiled on February 8, the March contract is trading 4.75 cents lower and has made a new low for the move of 8.62 1/4, which is the lowest print since 8.57 1/4 made on January 12. We have no recommendation.

WTI crude oil:

March WTI crude oil lost 83 cents on volume of 1,267,685 contracts. Total open interest declined by 8,175 contracts, which relative to volume is approximately 60% below average. As this report is being compiled on February 8 when the equity markets are trading sharply lower and the dollar index is trading down 36.4 points, the March contract is 99 cents lower on the day and has made a daily low of 29.57, which is the lowest print since 29.40 made on February 3.

Considering the magnitude of the equity market decline, WTI is holding up reasonably well. Additionally, March heating oil will generate a short-term buy signal on February 8, which should serve to support WTI prices to a certain extent. Offsetting this is the weakness in gasoline.  A test of the January 20 low of $27.56 seems likely. We have no recommendation.

Heating oil: March and April heating oil will generate short-term buy signals on February 8, but remain on intermediate term sell signals.

Swiss franc: On February 5, March Swiss franc generated a short-term buy signal, but remains on an intermediate term sell signal.

Euro:

The March euro lost 67 pips on volume of 283,426 contracts. Total open interest increased by 2,199 contracts, which relative to volume is approximately 50% below average. The March contract made a new high for the move of 1.1270, which takes out the February 4 high of 1.1250. As this report is being compiled on February 8, the March contract is trading 40 pips higher after making a daily low of 1.1096, which is the lowest print since 1.1079 made on February 4. On February 4, the March euro generated short and intermediate term buy signals. We have no recommendation.

Yen:

The March yen lost 10 pips on volume of 187,412 contracts. Total open interest increased by 4,005 contracts, which relative to volume is approximately 20% below average. As this report is being compiled on February 8, the March yen has skyrocketed higher up 108 pips or + 1.24% and has made a new high for the move of .8691, which usually takes out the previous high of .8631 made on January 20. On February 4, the March yen generated short and intermediate term buy signals. We have no recommendation.

Gold:

April gold advanced 20 cents on heavy volume of 228,384 contracts. Total open interest increased by 5,608 contracts, which relative to volume is average. On Friday, the April contract made a new high for the move of $1175.00, and this has been taken out by another new high of 1201.40. On January 7, April gold generated a short-term buy signal and an intermediate term buy signal on January 26. The market is overbought at this juncture, but under current market conditions, it can stay overbought for a considerable period of time. If not long from lower levels, we recommend a stand aside posture.

Silver:

March silver lost 7.2 cents on volume of 64,911 contracts. Total open interest declined just 6 contracts. As this report is being compiled on February 8, March silver is rocketing higher, up 63.7 cents and has made a new high for the move of $15.48, which takes out Friday’s print of 15.065. On January 26, OIA announced that March silver generated a short-term buy signal and an intermediate term buy signal on February 4. The market is massively overbought and we recommend a stand aside posture if not long from lower levels.

S&P 500 E-mini:

The March S&P 500 E-mini lost 32.50 points on volume of 2,328,632 contracts. Total open interest increased by a sizable 61,725 contracts, which relative to volume is average, but is a strong number. As this report is being compiled on February 8, the March contract is trading sharply lower, down 49.75 points or – 2.65%. The March contract is headed for a test of the January 20 low of 1804.25. If this is taken out, there could be an avalanche of selling. The market is massively oversold and well overdue for a good size rally, but if selling fever continues to grip the market, there is no telling how much lower this goes before a rebound. The E-mini should be traded only using options, but do NOT sell naked puts.