Live cattle: April live cattle will generate a short term sell signal on January 30, but remain on an intermediate term buy signal. We will report on today’s action tomorrow.
WTI crude oil:
March WTI crude oil lost 61 cents on volume of 853,700 contracts. Total open interest increased by 17,416 contracts, which relative to volume is approximately 20% below average. The February contract accounted for a gain of 869 of open interest. As this report is being compiled on January 30, the March contract is trading 48 cents lower and has made a daily low of 52.41, which is below Friday’s print of 52.58 and is the lowest since 52.21 made on January 23. The March contract is getting close to generating a short term sell signal and this will occur if the daily high is below OIA’s key pivot point for January 30 of 52.28. The rally will resume if the March contract makes a daily low above OIA’s pivot point for January 30 of 53.65. Stand aside.
S&P 500 E-mini:
The March S&P 500 E-mini lost 5.00 points on volume of 946,987 contracts. Total open interest declined by 13,429 contracts, which relative to volume is approximately 40% below average. As this report is being compiled on January 30, the March contract is trading sharply lower, down 20.25 points on heavy volume and has made a daily low of 2263.25, which is the lowest print since 2259.50 made on January 24.
Although, the market has been due for some kind of corrective activity, it appears the catalyst for today’s lower prices is the chaos created by the new administration with respect to immigration and other potential protectionist measures. We believe there will be major international blow back against the administration, and the danger lurking is the response of our adversaries. We think the world is entering a period of enormous instability, and expect more incidents that will shake core Western values. Please call or email for trading strategies.
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