This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Update portion for Tuesday November 11th.
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Happy Veterans Day!
December LEAN HOG:
We had a nice DOUBLE bounce off of the 87.00 level here recently. As we start to push up against the resistance of 90.50, I think we break right through it. I will be getting LONG here and the only question is if we should wait until we break through 90.00 first to do it. The MACD looks like it is getting ready to crossover, we’ll see…. The risk could be $1.50 from entry ($600.00) The objective would be 94.00 -95.00 where we congested back in September. I think we see 97.00 if the brutally cold weather becomes an issue early and the market stories of the PEV virus returns. (see attached HOG chart)
I sent out a Market To Watch on Cotton yesterday. As we will see traders begin to roll from December to March, in my opinion, this 61.00 -60.00 level HAS to hold. This MACD looks like it is poised to rollover after yesterday’s attempt to break/close above that trendline failed. Look for either range of the October channel that we have been in to hit and get short…63.00 on the upside if we muster up a rally this week or a break of 61.00 if we dont. In my opinion, there is a lot of air and downside potential should we see a move lower. (see attached COTTON chart)
December KANSAS CITY WHEAT:
We exited our short position yesterday just before the USDA Report. After an initial push below 5.70 early in the morning session to take out last week’s lows, we couldn’t hold it and we pushed back and closed above it (at 5.73) I like the price action to ride this market back higher if given the chance. A move above yesterday’s high of 5.77 would confirm the bounce. Look for the low on October 10th to provide slight support. The risk would be somewhat close, say 5.60? while I would look towards the 6.00 and above for an objective. (see attached KCW chart)
January CRUDE OIL:
OUTSIDE DAY! Yesterdays price action took the market ABOVE the previous day’s high and closed BELOW the previous day’s low. The last 5 trading days are a bear flag and I like the idea of getting short this market as we sit on this down trendline. The 80.00 level was old support from all of October and yesterday’s failed attempt to print it, put this market on my radar. We rallied from 76.00 to 79.50 and the oscillator in the MACD hardly registered at all. December will be coming off the board in just over a week, so we will turn our attention to January. (see attached CRUDE chart)
Have a great Tuesday! Call the desk or your DT broker if you want to get involved in the markets today!
LET’S DO THIS!
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