DECEMBER BONDS: December bonds continue to establish new relative highs, reaching 119.16 on November 19, and currently trading at 119.14. The bull trend will remain intact as long as the September 11 trendline at 116.27 remains intact. Daily momentum studies confirm recent highs, and new longs are recommended against the October 22 trendline at 118.15 with targets at new highs to 121.00.

MARCH EURODOLLARS: March Euros have yet to follow the long end to new highs, trading well below the October 28 high of 94.36, currently at 94.17. The daily studies maintain a bearish bias, and we prefer to stand aside and look to buy further weakness against the August 8 trendline at 94.05.

DECEMBER GOLD: December gold continues to establish new relative lows, reaching 300.0 on November 14, and currently trading at 304.1. The bear trend will remain firmly in place below the October 1 trendline at 316.7. While the daily studies are extremely oversold, we will not try to pick a bottom, but look to sell a bounce to 315.0.

DECEMBER CRUDE OIL: December crude fell apart this week, reaching the September 15 low of 19.44, currently trading at 19.60. While the trend will remain bearish below the October 3 trendline at 20.35, the short-term studies are very oversold, and we look to buy against the June 20 low of 19.18. Target 20.00 with stops below 19.00.

DECEMBER WHEAT: December wheat has established new relative lows of 339.4 on November 20, and looks to threaten the July 7 low of 335.0. While the trend will remain bearish below the October 22 trendline at 344.4, the daily studies are extremely overbought. We look to buy against 335.0, or go long on a break above 344.4. Target the 20-day moving average at 353.2 with stops below 335.0.

JANUARY SOYBEANS: January beans have come off the November 11 high of 748.0, and are currently resting on the 20-day moving average at 717.4. Daily MACD and stochastics continue to fall after generating sell signals, and we look to go short on a break below 714.0 with targets at the October 30 low of 687.0.

DECEMBER YEN: December yen continues to fall apart, reaching 7877 on November 19, currently trading at 7910. We will not try to pick a bottom but expect the contract to recover in the near term. Look for oversold momentum studies to carry the yen back to the 20-day moving average at 8145, a good location for new shorts. Target new lows to 7929 with stops above 8160.

DECEMBER DEUTSCHEMARK: The Deutschemark has broken below the 20-day moving average at 5789, confirming sell signals generated from daily MACD and stochastics oscillators. Look for further weakness to the August 6 trendline at 5691 where new longs are recommended.

DECEMBER POUND: The pound is coming off the November 12 high of 17114, currently trading at 16902, braking below the October 17 trendline at 16992. Daily studies have generated sell signals, and we look to go short on a break below 16770 for a test of the September 9 trendline at 16344. Stop above 17000.

DECEMBER CANADIAN DOLLAR: The Canadian Dollar continues to get beaten down, reaching new contract lows of 7041 as of this writing. This continues a bearish pattern of lower highs and lower lows, and the short-term outlook will remain bearish until the October 8 trendline at 7098. New shorts are recommended on strength as the longer-term trend is clearly bearish. Note that monthly ADX has upticked from below 10 for the first time since February of 1992. This resulted in a 4-year bear trend for the Canadian Dollar. With the BOC refusing to step in on behalf of the currency, we look for an easy test of 7000.

DECEMBER S&P 500: December S&Ps broke above the October 7 trendline at 957.63, currently trading at 961.00. This established a new pattern of lower highs and lower lows, and then we will maintain a bullish bias above the October 8 trendline at 926.88. New longs are recommended on weakness with targets at 980.50, then 992.25. Stop on a break below 926.00.

November 20, 1997Roman I. Dutkewych

Technical Data

A Division of Thomson Financial Networks

22 Pittsburgh Street, Boston, Massachusetts

Technical Corner Index

ASPRAY'S GLOBAL TRADER
COMMODITY INFORMATION SYSTEMS | WORLD COMMODITY PERSPECTIVE
FORTUCAST | G.I.S., WINTREND SYSTEM
GREENWICH NATWEST FUTURES DAILY TECHNICAL RESEARCH
HALCO TRADING STRATEGIES | SIEGEL | TECHNICAL DATA MARKET REVIEW
THE VOLUME REVERSAL SURVEY | VIEWPOINT TECHNICAL OUTLOOK
THE WEEKLY RE-LAY
WESTFALIA INVESTMENTS

Consensus National Futures and Financial On Line Index

Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com

wmeubank@ocp.kcmo.com