Bloomberg Access:{OIAR<GO>}

Sugar #11: On October 31, March 2017 NY sugar generated a short term sell signal, but remains on an intermediate term buy signal.

WTI crude oil: On October 31, December 2016 and January 2017 WTI crude oil generated short term sell signals, but remain on intermediate term buy signals.

December WTI crude oil lost $1.84 on volume of 1,050,828 contracts. Total open interest increased by a sizable 26,717 contracts, which relative to volume is average, but a total open interest increase on yesterday’s decline is bearish and confirms the downtrend. Yesterday’s open interest increase on a price decline was the second one in a row and with the heavy the long position held by managed money, prices should continue their downward trajectory.

As this report is being compiled on November 1, the December contract is trading 38 cents lower and has made a daily low of 46.30, which takes out yesterday’s print of 46.63 and is the lowest price since 44.35 made on September 28. Now that WTI is on a short term sell signal, the market should have a counter trend rally lasting 1-3 days and this is the opportunity to initiate bearish positions if you are so inclined.

Brent crude oil: On October 31, January and February 2017 Brent crude oil generated short term sell signals, but remain on intermediate term buy signals.

Gasoline: On October 31, December 2016 and January 2017 gasoline generated short term sell signals, but remain on intermediate term buy signals.

Natural gas:

December natural gas lost 7.9 cents on volume of 376,307 contracts. Total open interest declined by 5,066 contracts, which relative to volume is approximately 40% below average. The December contract made a low of $2.978, which was near the previous low for the move of 2.972 made on October 26. The December contract accounted for a loss of 8,866 of open interest.

As this report is being compiled on November 1, the December contract is trading sharply lower, down 11.7 cents and has made a new low for the move of $2.867 which takes out the June 2, 2016 low of 2.998. On October 26, OIA announced that December 2016 and January 2017 natural gas generated short and intermediate term sell signals. The real problem for natural gas is the heavy net long position of managed money (1.90:1)  and based upon recent price and open interest declines, there remains a large contingent of longs who are undoubtedly showing losses and will be forced to liquidate as prices move ever lower. Stand aside.

Gold: December 2016 and February 2017 New York gold will generate short term buy signals on November 1, but remains on intermediate term sell signals.

As this report is being compiled on November 1, the December contract is rocketing higher, up $16.20 or +1.26%. We will provide a full report tomorrow.

Silver: December 2016 and March 2017 New York silver will generate short term buy signals on November 1, but remains on intermediate term sell signals.

Like gold we will provide a report on today’s activity tomorrow. The December contract is rocketing higher, up 59.4 cents or +3.34%.