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August soybeans closed 16.25 cents lower on volume of 232,841 contracts. Open interest increased by 242 contracts. The USDA report was issued this morning and was bullish. I’ve made the point before, but I’ll make it again. In order for soybeans (and other grains) to move higher, they must have new buyers who willing to make commitments at stratospheric prices. Commercial interests are going to be on the sell side, and therefore it is going to take massive speculative buying to move soybeans higher. Investors should consult with their investment advisors or brokers regarding taking profits.
August soybean meal lost $5.70 on light volume of 60,727 contracts. Open interest increased by 1,077 contracts. Investors should consult their investment advisors or brokers regarding taking profits.
September corn lost 13.50 cents on volume of 309,508 contracts. Open interest increased by 455 contracts. Corn and the other grains are massively over extended and there is no reason to be long at current levels. Stand aside.
September wheat lost 7 cents on light volume of 93,663 contracts. Open interest increased by a massive 4,474 contracts. The open interest increase in relation to volume was heavy and I need to see more information before I can determine the meaning of the increase. In other words, I am unable to judge the significance of the increase until I see future activity. Stand aside.
August crude oil lost $2.08 on volume of 513,775 contracts. Open interest declined by 205 contracts. Stand aside.
August gasoline lost 1.25 cents on volume of 132,672 contracts. Open interest declined by 5,158 contracts. Stand aside.
September copper lost 3.35 cents on light volume of 45,901 contracts. Open interest increased by 530 contracts. Stand aside.
August gold lost $9.30 on relatively heavy volume of 177,173 contracts. Open interest increased on the decline by 2,493 contracts. Investors should be talking with their investment advisor or broker regarding accumulating gold for the long-term. However, investors should realize if the market penetrates $1523.90, the next area support will be in the $1,470 area.
September silver lost 56.2 cents on light volume of 39,338 contracts. Open interest increased on the decline by a massive 1,754 contracts. Relative to volume, the open interest increase on the decline was heavy and the market continues to act poorly. Stand aside.
The September Euro closed 58 points lower on volume of 227,133 contracts. Open interest increased on the decline by 3,627 contracts. Despite all the happy talk out of Europe, the Euro continues to act in a very bearish fashion. As I write this on July 11, the Euro has made a new low for the move at 1.2236. Stand aside.
S&P 500 E mini:
The S&P 500 E mini lost 13.75 points on heavier than normal volume of 2,023,364 contracts. Volume was the heaviest since June 29 when the S&P 500 E mini closed 34.00 points higher and volume reached 2,491,509 contracts. Although, the S&P 500 remains on a short and intermediate term buy signal, I do not think investors should be long the index. As I’ve stated before, I believe the better opportunity lies in Apple computer. Investors should be consulting with their investment advisor or broker regarding long positions in Apple, as well as maintaining or implementing long put protection in the S&P 500. Keep in mind that earnings for Apple will be released on July 16 after the close. This could spark some very volatile market action, and therefore investors should consult with their investment advisor or broker with respect to their investment positioning prior to the report. One way of playing Apple is to be long Apple options. This provide investors with a limit on downside risk (loss on long options are limited to the premium paid) in the event of a negative surprise.