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July soybeans closed 49 1/4 cents lower on fairly light volume of 248,886 contracts. Open interest declined by 7,149 contracts. The open interest decline was above average in relation to the volume. However, volume was light considering the magnitude of the decline. For example, on May 8, soybeans declined 27 1/2 cents and volume was 252,855 contracts. The light volume combined with the respectable, but insufficient open interest decline, indicates that more selling may be in the offing. I do not believe the correction is over. Stand aside.
July corn closed 6 1/2 cents lower on volume of 321,682 contracts. Open interest increased on the decline by 2,775 contracts. During the past three sessions corn has declined by 42 cents, and open interest has increased by 16,784 contracts. The market action clearly shows the bears are in control, but as I pointed out in the May 13 Weekend Wrap, I think the market is at the low end of its trading range. The low on Friday was $5.72 1/4, which is just shy of the low of $5.71 1/2 made December 6, 2011 on the continuation chart. Stand aside.
June crude oil closed 95 cents lower on volume of 530,233 contracts. Open interest declined by 5,347 contracts. This was the fifth day in a row that open interest declined for a total of 62,401 contracts. On May 7, June crude oil generated in intermediate term sell signal, and the market has been on a short-term sell signal since March 29. As I write this on May 14, crude oil is $1.65 lower. Stand aside.
June gasoline closed .94 cents lower on very light volume of 111,268 contracts. Open interest increased by 1,986 contracts. Gasoline generated a short-term sell signal on April 17 and has not yet generated an intermediate term sell signal. Stand aside.
July copper lost 4.25 cents on volume of 64,175 contracts. Open interest increased by 820 contracts. I think it is highly likely that an intermediate term sell signal will be generated on May 15. As I write this on May 14, July copper is 10.30 cents lower. Please review the May 13 and April 15 Weekend Wrap about my bearish views on copper.
June gold closed $11.50 lower on heavier than normal volume of 186,266 contracts. Open interest increased by 2,220 contracts. This was the fourth session since May 7 that gold declined and open interest increased. This is certainly bearish market action. Please consult your investment advisor or broker before embarking on a plan to accumulate gold for the long term at lower prices.
July silver lost 28.8 cents on volume of 38,354 contracts. Open interest declined by 165 contracts. There is no reason to be involved in this market. Stand aside.
The June Euro closed 29 points lower on volume of 221,847 contracts. Open interest increased by 875 contracts. On May 9, the Dollar Index generated both a short-term and intermediate term buy signal. As I write this on May 14, the June Euro is 79 points lower. Stand aside.
S&P 500 E mini:
The June S&P 500 E mini lost 7.50 points on volume of 1,841,948 contracts. Open interest increased on the decline by 17,453 contracts. On four occasions, since May 4, open interest has increased when the S&P E mini declines. This is bearish price and open interest action, which is confirmed by increasing volume when the market declines. As I write this on May 14, the E mini is 10.00 points lower. Long put protection should already be in place.