Tuesday, April 17, 2007

Daily Market Comment

Equity - Mixed day in equities today and a very narrow range for the S&P 500. I still continue to look for a correction in here.

The seasonal chart shows a peak in the April 16-17th area and a low made in the last 2 trading days of April.

S&P 500 has potential to make a bearish evening star pattern, so tomorrow will be quite key.







10 Year Note - Looks like it has almost made up its mind for rates to move lower. A crossing of the MACD will help to confirm the shift in the intermediate term trend.




Cocoa - Testing the highs, but market is still very vulnerable to a mini-crash. The cocoa market should turn lower from here with a possible brief new high.
Corn - Market is at the short term crossroads. Corn could have a sharp rally from here and retrace a bit more of the most recent decline or it could break and make a new low to end the first leg down.
Regardless of the direction it takes, the long and intermediate term in Corn is bearish!!
Sugar #11 - Continues to have strong rally potential, but a few more confirmations are needed before it can be taken in a serious manner.
Analysis of stocks will be updated later tonight.
I will mention that you should take a look at Ford as it offers a potential rally phase to above $11. I will be covering this in more detail later. Short term I expect Ford to continue to show weakness.




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