Energies Market Review for The Week of July 26th, 2010

Time pasts too quickly. How about your business? I hope you had a great trading week. Now, new week comes with changes we should note for our new trading week. Just check out The Energies Review for the week of July 26th, 2010 to see what our expert - PitGuru Daniel Cronin - notes about the market.

"The energy markets had a great week last week rallying in all of the sectors as the equity market ticked higher and the Euro continued its torrid pace against the USD. The one key factor on Friday was that the market sustained gains not giving anything back to head out the close to the weekend. WTI spreads have also sustained the recent rally as the inventory space in the Oil market declined some 5 million barrels last week and have dipped the last 4 straight weeks. Sep/Oct still in the -30's while Oct/Nov is trading at -50. The only negative to this market is that Hurricane Bonnie dissipated as a tropical storm near the U.S. Gulf Coast at the weekend, sparing refineries and offshore production operations. BP Plc vessels returned to the area working to permanently plug a damaged well, the source of the largest oil spill in U.S. history.

This is the only factor why Oil has not tried to break through $80 yet. Crude was above $79 and at the top of the range so I am recommending some put purchases based on technical analysis resistance at this $80 level.

Natural Gas has traded up to $4.70 again this week, which is great resistance as warnings of Hurricane Bonnie led shorts to get squeezed out of the market. I would say this too should be sold up at the $4.75 level and I suspect prices will drift back down to $4.30."

So far, you have a whole view of energies market and noted down necessary information. As I noted that, energy is not the only market that futures traders need to care. You also can view other weekly futures market review that I cannot share with you all here to decide your trading. I wish you a successful week. We will meet again in the next week for new reviews.

The Financials Pit Review for The Week of July 19th, 2010

Time makes things change and renew the markets. A week has gone, now just check how the financial market going.

The Financials Pit Review
for The Week of July 19th, 2010

By PitGuru Frank LaMantia

JD Power has released their annual survey of investor satisfaction with brokerage firms. Full service brokerages that one might expect to have pulled ahead in ratings were down. BOA/Merrill, Morgan Stanley/Smith Barney, and Wells Fargo came up on the short side of the list. The overall top 3 firms that measured investor’s perception of the advisers, performance of investments, and accounting fees was Edward Jones, Royal Bank of Canada’s RBC Wealth Management, and LBL Financial. An increasing proportion of the 4,460 investors who took the survey said they believed their investment firm was driven more by profit concerns than focused on the customer.

Friday could be a market-mover simply because the stress announcements for over 91 banks in Europe will be announced. This will hopefully show weak spots and give vulnerable banks the opportunity to raise capital. These tests are being taken to show Asian wealth funds that European savings banks are not risky business, and also show that investors are confident. Are these tests being done for the right reasons? It seems as though it is for money rather than the safety of consumers!

Corporate earnings used to be cut and dry where positive earnings helped the stock market move in an upward direction. Economic reports have put a solemn mood on earnings before the season even started. A year ago many polled said a double recession was impossible. Now it is in the financial news as a main topic each day. The housing market still seems to be a thorn in the consumer’s side. Sideways trading, little to no growth, and possibly a double recession could be what is in store for the future.

The S&P traded up 4 points to 1065 the DOW traded at 10089 up 30 points in premarket trading. Some may consider this trader pessimistic or even doom and gloom but if this market stagnates at this juncture a sell off could be in the midst. Many times in this situation the market gains momentum to give itself a cushion just in case bad news is announced.

To keep up with the financial market, check out the free currency rate calculator for extra help!

Grains Review - July 12, 2010

The Grains Pitguru Review
For the week of July 12^th, 2010

Friday saw WASDE deflate any upside ideas in wheat with old crop complex factors showing the best strength heading into the weekend. There was little action in corn with the market failing against the recent highs with no weather concerns on the immediate forecast. The ridge is still there but it’s a bit deflated as compared with late last week. This added to a lack of weather concern in China and enhances the corrective possibilities with no news coming over the weekend to spark the next upside move. Macros are not helping bullish sentiment pointing to a short term correction with corn and wheat sure to be the weaker of the big three with bean demand from both China and domestic crushers remaining firm in old crop. Bean oil should gain against meal due to a correction in the latter market and growing concern in the Canadian prairies. The overnight fell but recovered off nightly lows with no real pressure seen but no reason to rally. Looking at the day session there is little direction seen that differs from the overnight with a strong USD adding to slight bearish momentum and nothing coming from either crude or gold to spark major movement. Look lower without drama to start the week.

Beans are called flat-2 lower to start with July and new crop looking weakest. The 200-day MA in Sep is the first downside corrective target. Corn is called flat/mixed to start with the 100-day MA sitting at 375.50 acting as the first downside consolidation target. Wheat is called flat/mixed with the 200-day MA and Friday’s low sitting at 532.50 acting as first support. Soy Meal is called flat-1 lower with the range high at 291.30 acting as firm resistance with the 200-day MA acting as the first downside consolidation target. Bean Oil is called 10-20 lower looking to hold the 20-day at 37.44 with the 50-day at 37.82 acting as the first bullish target.

Open Interest moved as follows: Beans +3794, Corn +8874, Wheat +-391, Meal +1792 and Bean Oil -2186. The small drops in bean oil I attribute to shorts exiting on the recovery above the 20-day MA. Short term money in corn is a risk to bulls with any pullback approaching the 100-day MA sure to bring in liquidation.

Argentina has stopped issuing Beef export licenses which may be the first step in limiting corn and bean exports. Nothing immediately bullish but if they continue to curb food inflation, currently at 20%, the world will have to come to the US for old crop beans and meal.

Late sales of 152,500 TMT US corn for new crop to an unknown, probably China though it cannot be confirmed as of yet.

By PitGuru Matthew Pierce

Metals Review - July 12, 2010

The Metals Pitguru Review
For the week of July 12^th, 2010

Precious metals slid last week as investment demand for the Gold market faded just a bit as prices at one time slid below $1,185. Gold rose to above $1,200 but is still not showing any real signs of returning to a new high. One would think that the equity markets decline and a rally in the Euro meant a rally in the Gold price but this was just the opposite. The market then made a turnaround in the S&P to 1060 and Gold followed suit a bit higher, so for right now I think it’s advisable to stay away to avoid this choppy situation. Look to buy some calls on a dip around $1,170.

Copper once again failing to really bust through the $3.05 level as it has traded down to $3.01. This market has not really had any luck trying to go higher but it has had higher lows recently so that is one positive sign to look to. This market really needs to break $3.10 to bust higher but for right now it’s range bound from $2.90 to $3.06.

By PitGuru Daniel Cronin

Softs Review - July 12, 2010

The Softs Pitguru Review
For the week of July 12^th, 2010

The soft markets may receive influence from outside markets, equities and the dollar, yet they have recently provided some movement and thus opportunities. Expect that to continue, but in violent choppy fashion.

Coffee prices have established a wide range, trading between 15685 and 16720 this past week, and settling Friday at 16385. The wide range is keeping traders nervous and the market choppy. And while I fully expect that range to serve as support and resistance until prices either jump over 168 or below 155, even then, stop hunting will fuel volume and another quick 300 points, I still believe that the market has further upside appeal. Having reached that high early Friday, this morning values are under pressure and apt to test last week's low. Fundamentally, there have been no changes, with Brazil's large crop expected to have problems with quality so as to allow differentials to continue to be a focus. Until the market breaks below 155, expect potential on the upside.

Sugar prices dropped late Friday and wiped out the nice rally the market had going. October had traded from a low of 1641 on Wednesday morning to an early 1741 high on Friday, but the price action that followed strongly suggests that the market has found a short-term top. This morning prices are attempting to get back over 17, which if successful, brings Friday's high and 18 cents back into play. Otherwise, sugar will try and build momentum and likely languish.

Cotton has been showing signs of trying to bottom. Friday saw active interest in calls. Although the bigger US crop and weak technicals have kept buyers away. Support ought to be found at 74 cents and resistance at 80 cents, but should 74 give way then 70 cents is the next level to look for. I favor the long side in cotton.

By PitGuru Jurgens H. Bauer

Financials Review - July 12, 2010

The Financials Pitguru Review
For the week of July 12th, 2010

The next few weeks are pivotal for Wall St as earnings are set to make an impact on what direction the market goes. Tonight Alcoa (AA) will announce its earnings and is the stock that typically shows how earnings will go. There is a slow cautious feeling on the floor as traders wait for statistics. A question to ask is does the market trend upward the week before earnings season? The past few earnings seasons it seems as though a cushion was laid down like a shock absorber. The DOW jumped 5% last week and has shown resilience at the 10,000 level for a few months. However the DOW is still down 9% from the highs of last April.

A report was announced showing that 25.5% or 43.4 million people have a credit rating below 599. This might be the most frustrating time for mortgage brokers that have the business but no way of getting the loans to go through. This could be another sign of a weakening housing market. A credit score of 680 is helpful in many situations and may be the cut off point for many Americans.

It is wise to be cautious in earnings season especially for day traders. One needs to act short term but think long term. Questions to think about over the next few weeks for the long term: Is U.S. debt going to creep up and bite Americans like Greece or Spain? Could the housing market crumble again? How about the short term? Could earnings season point the market into a runaway bull? Could the U.S. bring confidence back to consumers? Look for correlations to try and predict future events. Obviously past results are not indicative of future results but it is nice to have a measurement when doing an analysis for the future.

By PitGuru Frank LaMantia

Energies Review - July 12, 2010

Crude Oil had a very nice bounce last week as the August flatprice rallied from $71.00 to $76.00 as the equity market rallied from 1000 to 1070 in the S&P. Inventory reports were a draw in the oil space and in the Cushing market and thus led to the charge in the WTI spreads. The front spreads are now in the -40's as this is somewhat of a bullish sign long-term. This week, however, I believe you will see some profit taking and the market trending back toward the $74 level but I would be a buyer there as that is a nice valuation point for the crude market.

China’s net crude purchases climbed to 22.14 million metric tons in June, beating the previous record of 20.98 million tons in April, according to preliminary data from the General Administration of Customs on July 10. Imports surged 30 percent in the first half of this year on higher demand and lower costs. These numbers do signify that demand is coming back into the market, especially Chinese demand, so these numbers should not go unnoticed.

Natural Gas slipped to $4.40 and is a great buying opportunity as it is on the low end of the range trade. Inventory reports did not sit well with traders as the market came off but this price level offers a great value buy in the Natty Gas.

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