On the back of recent weakness, we are watching for a conviction break below 3.13 in the July Wheat Contract.
This past week equity markets rose as the underlying S&P index climbed 2.20 %. Above, the September S&P futures contract rose 1.92% for the week. During this rally we were able to step-in for a quick day-trade on Tuesday and a 3.4% gain.
Moving forward we still believe bias remains strong, for a downward move and therefore, we are poised for a short-term downward move.
Oil made a big move this week on the back of tensions in the Middle East. The August contract, pictured above, was up 8.83% for the week. We are currently Long the August contract from $55.50.
Although, we believe the longer term trend in Oil is upward, it would not be surprising to see some consolidation occur this week. We will be looking to remain with our current trade, with an eye towards protecting our current open-profits.
It was an active week in the Gold market as the August contract, pictured above, moved up 4.14%. This move was in conjunction with a rise in world tensions. We entered three trades this week in gold with the first two being closed-out at break-even while the third resulted in a 7.5% gain.
We like the strength Gold has been showing recently and we are looking for continued strength in the week ahead.
Agricultural futures were Flat to Lower this week as September Wheat, pictured above, was off -2.08% and November Soybeans climbed a very modest .42%. We were not active in these markets this past week.
Going forward next week, we are looking for further declines as the spring planting season gives way to the summer growing season.
Have a great week in the markets!
Amid Poor export numbers and surplus stocks; Corn, Soybeans and Wheat have begun to consolidate with a downward bias. In December Wheat, (pictured above), support and resistance are 505 and 527 respectively. Unless we see positive export news, we expect to see Corn, Soybeans and Wheat to trend lower.