March corn closed 5 1/2 cents higher on volume of 325,274 contracts. Open interest increased by 4,585 contracts. Despite the massive increase in open interest over the last month and a half, corn has not been able to move to its January 3 high of 6.64. Continue to stand aside.
March soybeans closed 9 1/4 cents higher on volume of 172 525 contracts. Open interest increased by 3,457 contracts. The market made a new high at 12.73 1/4. The market is overbought and protective sell stops to protect capital and profits should be in place. If not already long from lower levels, stand aside.
March sugar closed three points higher on very light volume of 79,704 contracts. Open interest declined by 6,716 contracts. Stand aside.
March crude oil closed $.93 higher on volume of 777,665 contracts. Open interest declined by 38,045 contracts. The market briefly broke above its old high of 103.88. Geopolitical tensions are ratcheting up the price of crude. Stand aside
March gasoline closed lower by 3.15 cents on volume of 130,959 contracts. Open interest declined by 4,048 contracts. The open interest action is indicative of a bull market, but the market is extremely overbought. Stand aside and wait for lower prices.
April gold closed $2.50 lower on light volume of 129,739 contracts. Open interest declined by 885 contracts. Stand aside.
March silver closed lower by $.15 on volume of 50,988 contracts. Open interest declined 308 contracts. Stand aside.
The March Euro close 18 points higher on light volume of 233,219 contracts. Open interest increased by 1,416 contracts. As I’ve said before, long puts, and/or short calls, and/or short positions should be implemented on rallies. The February 9 high of 1.3325 should be used as an exit point for the aforementioned positions.
S&P 500 E mini:
The March S&P 500 E mini closed 5.00 points higher on extremely light volume of 1,255,443 contracts. Open interest increased by 14,607 contracts. Long put protection should be in place.
10 Year Treasury Notes:
March 10 year treasury notes closed 2 points lower on light volume of 863,609 contracts. Open interest increased by 29,423 contracts. As I pointed out in the February 20 weekend wrap, open interest and price action in treasury notes is looking increasingly bearish. The low on February 17 came within one point of matching the low of February 9. I am not suggesting the implementation of bearish positions because the market needs to penetrate through the three key pivot points listed in the February 20 report. Additionally, if the equities market falls out a bed, as I expect it to, notes could soar much higher, if only temporarily. For now, stand aside.