March corn rallied 9 1/4 cents on volume of 373,993 contracts. Open interest declined by 7,627 contracts. Since January 3, the first trading day of the year, open interest has never declined when the market has rallied more than 4 1/2 cents. Continue to stand aside.
March soybeans closed 2 3/4 cents higher on volume of 223,463 contracts. Open interest declined by 4,009 contracts. If long from significantly lower levels, move stops up to protect any profits. As I pointed out in yesterday’s post, the market is overbought and is subject to a correction. If not long, stand aside and wait for correction.
March sugar closed 10 points higher on volume of 134,964 contracts. Open interest increased by 2,943 contracts. Stand aside.
March crude oil closed $.51 higher on volume of 660,975 contracts. Open interest increased by 4,330 contracts. The market made a fractionally new high for the move at 102 69, which exceeded the February 15th high by $.15. It was somewhat disappointing that crude was unable to break out to new highs despite the positive action in many commodity markets. As I’ve said before, I’m friendly to the market, but my concern is that we are approaching highs going back to November. The 50 day moving average for March crude is 99.52. Stand aside and wait for correction.
March gasoline closed 4.04 cents higher on light volume of 133, 347 contracts. Open interest increased by 3,303. The market made a new high at 3.0514 and a new closing high of 3.0471, which was the highest price for gasoline since August of 2011. Wait for correction to the 2.70-2.80 area.
April gold closed $.30 higher on volume of 182, 208 contracts. Open interest increased by 2,502 contracts. The market made a low of 1706.70 and then rallied to close essentially unchanged. The low was $.30 above the previous low of 1706.40 which was made on February 10. The 1706 area should be watched carefully to see whether this will act as support. Stand aside.
March silver closed three cents lower on volume of 60,627 contracts. Open interest increased 649 contracts. Silver made a new low for the move at 32.64, which was the lowest price for March silver since January 25, 2012. Stand aside.
The March Euro closed 70 points higher on volume of 359,743 contracts. The bearish pattern continues with open interest declining 5,001 contracts on the rally. I have already suggested that on rallies either/and, long puts, short calls, or outright short positions be implemented. Use the high of 1.3325 as a benchmark to exit the aforementioned positions.
S&P 500 E mini:
The March S&P 500 E mini closed 12.50 points higher on volume of one, 1,963,724 contracts. Open interest increased a paltry 5,102 contracts. This market is over extended by any measurement. Long put positions should be in place.