In This Issue
Dec. Corn Holds Above Key Fibonacci Level
November Futures Market Outlook
by Jim Wyckoff
December corn futures at the Chicago Board of Trade this week have regained near-term technical momentum after a sharp downside price correction occurred last week. Importantly, Monday's low of $3.59 1/4 in December corn marked the 50% Fibonacci retracement level of the price move from the September low of $3.02 to the October high of $4.13 1/2. Prices on Monday rebounded strongly from that key technical level to post a bullish "outside day" up on the daily bar chart, whereby the session high was higher and low was lower than the previous session's trading range, with a higher close. December corn on Tuesday then showed important follow-through buying strength. The solid rebound in December corn from the key 50% Fibonacci retracement level this week now strongly suggests that price level will not be retested any time soon and that the price uptrend on the daily chart has resumed. The next upside price objective for the corn market bulls is to produce a close above strong overhead technical resistance at the October high of $4.13 1/2 a bushel, basis December futures. Below that level does lie psychological resistance at the $4.00 level, which prices are now challenging.
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
The clock is rapidly running out on 2009 and practically all asset classes are still benefiting from the widespread belief the global economy is on the mend. Many nations reported a return to GDP growth in Q3 and several have officially moved out of recession (with the glaring exception of the UK). Despite the apparent arrival of an inflection point, doubts about the sustainability of the recovery have begun to creep in. After an impressive 50% rally off March lows, equity markets saw some profit taking over the last two weeks of October as the trend of improving economic data lost steam. Despite the diminishing chances of a double dip recession, markets are still coming to grips with the "new normal" of uncomfortably low growth and higher savings rates even as stimulus spending starts to taper off. If November's economic data and political events demonstrate more fatigue, the holiday season may be less than cheery.
Read the November Futures Market Outlook for free!
Fill out the short form below for instant access.
Cannon Trading respects your privacy and will never give this information to a 3rd party.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 11/05 Thu |
7:30 AM CST - Productivity-Prel(Q3)
7:30 AM CST - Initial Claims-Weekly 7:30 AM CST - USDA Weekly Export Sales 9:35 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply |
|
| 11/06 Fri |
7:30 AM CST - Dairy Products Prices
7:30 AM CST - Ave Workweek & Hourly Earnings(Oct) 7:30 AM CST - Nonfarms Payrolls(Oct) 7:30 AM CST - Unemployment Rate(Oct) 9:00 AM CST - Wholesale Inventories(Sep) 1:00 PM CST - Consumer Credit(Sep) |
LT: Nov Canadian Dollar Options(CME)
Nov Currencies Options(CME) Nov US Dollar Index Options(CME) Nov Live Cattle Options(CME) Dec Cocoa Options(ICE) |
| 11/09 Mon |
|
LT: Nov Orange Juice(ICE)
|
| 11/10 Tue |
7:30 AM CST - WASDE Report & Crop Production
|
|
| 11/11 Wed |
Veterans Day Holiday
|
|
| 11/12 Thu |
7:30 AM CST - Initial Claims-Weekly
9:35 AM CST - API & DOE Energy Stats 1:00 PM CST - Treasury Budget(Oct) |
LT: Dec Coffee Options(ICE)
|
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!