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Bi-Weekly Investment Outlook II

May 31, 1998

THIS PUBLICATION CONTAINS THE VIEW AND OPINIONS OF THE AUTHOR, EXCEPT WHERE OPINIONS ARE ATTRIBUTED TO OTHER SOURCES. WRITTEN PERMISSION IS. REQUIRED PRIOR TO ANY DISTRIBUTION OR REPRODUCTION. FUTURES TRADING IS RISKY AND CAN CAUSE SUBSTANTIAL FINANCIAL LOSS. THE USE OF OPTIONS AND OPTION TRADING INVOLVES A HIGH DEGREE OF RISK. THE USE OF STOPS MAY NOT LIMIT LOSSES TO INTENDED AMOUNTS. SPREAD POSITIONS MAY NOT BE LESS RISKY THAN OUTRIGHT FUTURES POSITIONS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. SOURCES ARE BELIEVED TO BE RELIABLE BUT NO ASSURANCE IS MADE FOR ACCURACY. ADDITIONAL RISK DISCLOSURE IS AVAILABLE.

Bi-Weekly Investment Outlook II
Sunday May 31, 1998
6:00 AM

On the Frenzied Forex Front
Sept. J-Yen

Sept. Yen should find some support at 7110. Below that support is near 7088 and 7074. Go long for a go long for a good 2 day bounce at 7112. Risk a close under 7074 for two days in a row. Resistance should first appear at 7379 and 7414. Good resistance should appear near 7486. A close over 7486 indicates a rally to 7601. Traders can sell at 7601 for a turn lower. Initially plan risking a close over 7617 for three days in a row. Beyond that 7704 and 7763 to 7777 offer resistance. Traders should go short at 7777, risk a close over 7836 for three days in a row.

Sept. Swiss

Nearby support should appear at 6809. Beneath that support is at 6755. Traders should go long at 6755. Initially risk a close under 6740 for two days in a row. Below that 6673 offer support. Position traders should buy for the ‘Pull’ at 6673 risk a close under 6590 for three days in a row.

Resistance should first begin at 6836 and 6858. A close over 6855 augurs for a 'pop' to 6906 to 6919. Hearty traders can go long using a 6837 stop.

Beyond that resistance is near 6933 then 6957. Above that resistance is at 6990 to 7003 then 7074 to 7088. Traders should Sell short at 7074, and risk a close over 7091 for three days in a row.

Trade Accordingly
Sept. British Pound:

Support is at 1.6150 and 1.6090. Go long at 1.6150 risk a close under 1.6090. For two days in a row. Below that support is at 1.5968 then 1.5930 and 1.5760. Resistance is at 1.6290 and 163.60. A close over 1.6362 augurs for a test of 1.6420 to 1.6550. Traders should sell short at 1.6550, risk a close over 1.6620 for two days in a row.

Sept. D-Mark.

Early support is at 5623/ 5612 below that 5577 and 5553 offer good support. Go long a 5577 for a turn higher, risk a close under 5549 for two days in a row. A failure there indicates a test of 5504 to 5492. Traders can buy at 5493 for a bounce risk close under 5487. Resistance is at 5640 to 5653. Beyond that a rally to 5690 and the 5716 to 5729 region is likely. Traders should go long using a 5647 stop.

Above that Resistance is near 5761 and 5792 to 5805 Traders should sell at 5760, Risk a close over 5806 for two days in a row. More Resistance is near 5855 and 5880. Go short at 5855, risk a close under 5880 for two days in a row.

Sept. Canadian Dollar

Support is at 6836 to 6809, buy at 6836 risk a close under 6809 for three days in a row.

Resistance is near 6681 and 6906 a close over 6906 augurs for a test of 6930 and 6990

Sell at 6990 risk a close over 7005 for two days in a row.

Trade Accordingly

Precious Metals
Traders should Roll 1/2 of June Gold to August.
August Gold

Good Support is near 292.80. Under that traders should buy at 291.20 and hold. Nearby Resistance is at 299.60 and 303.60, a close over 304. augurs for a test of 309.70 to 312 Beyond that 319 to 324 offers

Resistance.

Add to longs on a close over 304

Trade Accordingly.

July Copper: Recommended Position Long at 7780

Nearby Support is at 7615. Below that 7530 and 7455 offer support.

Early resistance is at 7815. Above that resistance is at 7920 and 8005. A close over 8005 indicates a ‘pop’ to 8190 and 8220. Beyond that Resistance is at 8390 and 8405. Where traders should sell for a turn lower at 8390 and risk a close over 8500 for two days in a row.

Trade Accordingly.

July Platinum.

Support begins at 367, below that 357 offers good support. Traders should buy at 358 and hold, Additional support is near 348, buy at 349, risk a close under 331 for two days in a row on all positions.

Nearby Resistance is at 372, a close over augurs for a test of 376 and 384. Beyond that a move towards 396 is likely.

Long Term Friendly

July Silver Recommended Position long at 544

On the Downside: Support is at 507 and 499, below that traders should buy at 492 and hold. On the Upside resistance is at 517 and 522, a close over 522 augurs for a test of the 538 and 553. A close over 555 indicates a rally to 596.

The Exciting Energies
July Crude Recommended Position long at 1511

Early support is at 1515 and 1490 to 1481. Below that 1436 and 1418 should act as support. Resistance is at 1531, a close over augurs for a test of resistance at 1571. A close over 1571 indicates a thrust towards 1650 is likely. Traders should sell at 1642 for a turn lower, risk a close over 1688 for two days in a row.

July Unleaded Gas

Support is at 5027. Traders should buy at 5035, risk a close under 4970 for two days in a row. Below that 4835 should hold.

Resistance is near 5180. Beyond that resistance is near 5225. A close over 5280 augurs for a test of 5460. Traders should sell for a turn lower at 5460. Risk a close over 5505 for three days in a row.

July Heating Oil Recommended Position long at 4080

Resistance near 4135 and 4180. A close over 4180 augurs for a test of 4335.

Beyond that resistance is at 4560. Traders can go short at 4570, risk a close over 4590 for two days in a row. Support is at 4015 and 3929 Below that 3862 offers support. Traders should go long at 3869, risk a close under 3855 for three days in a row.

The Grande Grains
July Soybeans Recommended Position Long at 640, 639,645

Early Support is at 6181/4 and 616 1/2 Under that 611 offers support as does 602. Early resistance this week is 619 1/2, a close over augurs for a test of 625. Beyond that 633 and 641 offers resistance. A close over 641 indicates a test of 657.

August Beans Recommended Position Long at 632 Hold

Spread Long August Short Nov. at 24 cents over Hold

July Soybean Meal

Support is 157.70 under that 155.60 offers support. Below that 153.30 should contain the break. Resistance is at 161.90. A close over 161.90 is friendly for a rally to 164 and 166.

July Soybean Oil

Early support is at 2568 and 2542 Traders should buy at 2542 Risk a close under 2511 for two days in a row. Below that good support is 2469. Resistance is near 2620 to 2629. A close over 2620 augurs for a test of 2660 and 2690. Beyond that 2760 offers resistance, traders can sell at 2760 for a turn lower, Risk a close over 2776 for two days in a row

July Corn

Support should appear near 235 3/4. Under that 230 offers support. Resistance is near 240 and 245. A close over 247 augurs for a test of 259 Beyond that sellers will appear near 264 and 271.

Traders should Go long at 247 stop close only. Risk a close under 241.

July Wheat

Resistance begins near and 286 1/2, a close over 291 augurs for a test of the 297 to the 303 region. Traders can sell at 304 3/4 for a turn lower, risk a close over 311 for two days in a row. Support should appear near 274, below that 262 should hold. Traders can Go Long for the ‘Pull’ at 262.

A close over 287 is friendly, stay tuned

The Satisfying Softs

July Cotton Recommended position Short at 6940

Support is 7005 and 6990. A slip under 6990 augurs for a test of 6935 and 6905. Below that 6835 and 6760 offers support. Traders can buy at 6760 and hold for higher prices. Below that support should appear near 6620.

Resistance is at 7105 and 7155. Beyond that 7320 offers resistance. Traders can sell short at 7330 for a turn lower, risk a close over 7345 for two days in row.

A close early in the week under 7000 is negative.

July Sugar

Support is 823 and 814, traders can buy at 823, risk close under 787 for two days in a row. Resistance is near 829 and 847 to 852. Above that 867 offers good resistance. A close over 867 augurs for a thrust towards 907 and 912, traders should sell at 907, risk a close over 912 for three days in a row.

July, the Monster, Coffee: Recommended Position Long at 143.60

On the DownSide, Early support is at 131.90 and 131.00. Below that under that 130.40 offers support. Beneath 130 traders should buy at 129.45 for a bounce. Stay tuned for the stop. Below that 126.80 and should hold.

On the Upside, Resistance is 133.40 and 134.45 to 134.60. A close over 134.60 is friendly for a test of 135.90. Beyond that 137.70 to 138.30 should trade. Above that 139.60 offers resistance as does 144.00 and 152.00

Trade Accordingly and Keep a Steel Cup handy.

July Cocoa Recommended Position long at 1715.

Support is at 1657, traders might be tempted to probe the long side at 1655, risk a close under 1640 for three days in a row. Resistance is 1689/ 1691, A close over 1690 is friendly for a test of 1732. Beyond that resistance is at 1750 and 1804 to 1814. Traders should sell at 1822 for a turn lower, risk a close over 1858 for two days in a row.

The Lively Livestock
June Cattle Recommended Position long at 6867

Early Support is near 6412. More support should appear near 6337.

Resistance is at 6465 to 6487 and 6552. A close over 6465 augurs for a test of 6552, beyond that 6597 a close over indicates a test of resistance at 6682.

June Hogs Recommended Position Long at 6055

Support is at 6102, buy there and hold for higher prices. Below that 6002 and 5982 offer support. Resistance is near 6172 and 6197. A close over that region augurs for a test of 6297. Beyond that 6412 offers resistance.

Trade Accordingly.

July Pork Bellies Recommended Position Long at 5440 and 5175

On the DownSide Early support is near 4987 buy there for a bounce and stay tuned.

Below that support should appear 4827. Under that 4752 offers support as does 4537 and 4427.

On the Upside Resistance is near 5067 and 5132. An extended trade or close over 5147 augurs for a test of 5227 and 5277. A close over 5287 augurs for a thrust towards 5590. Beyond that 5657 offers resistance as does 5727 above that a trade to 6042 is likely ---From the Frying Pan into the Fire---

The Sensational Stock and Bond Markets

June 30 Yr. Bonds Recommended Position Short at 119-30,119-29 and 121-19

Sept. Bonds

Early Support is 121-03 a close under augurs for a pullback towards 120-14 and

120-05. Below that support is near 119-24 and 119-05. An extended trade or close under 119-05 would indicate a slip to the 118-07 and 117-22 regions. Traders can go long at 117-22 for a turn higher , risk a close under 117-06 for three days in a row.

Resistance is at 122-03 to 122-05. More resistance should appear near 122-11 and 123-05 beyond that 124-06 offers resistance. Sell at 124-06 and hold.

June SP500 Recommended Position Short at 1101.20

On the DownSide, Support is at 1082 , a close under augurs for a trade to support near 1076.90 to 1072 and more likely the 1068.00 /1066.70 region of support. Below that support should appear at 1060.20 and 1058.00. Below that 1043 and 1036 to 1032 offers good support. Traders can Buy at 1036 for a turn higher .. Stay tuned for a stop.

On the Upside, Resistance is at 1092.10 then 1096 and 1098.50 to 1099.40. Beyond that 1101 offers resistance. Above that 1107.80 should bring out some sellers. Beyond that 1115.50 should cap a rally briefly, Sell at 1115.50 risk a close over resistance at 1124 for three days in a row. Beyond that resistance should appear near 1130.00 Sell at 1130 and Hold.

A close under 1182 is negative, if this occurs traders who have 'Ice Water
Running through their Veins.' Should Go Short.
The Dow Jones Industrial Average

Initial support is at 8871 and 8856 below that a test of 8814 to 8807 is likely.

A close under 8798 is negative and augurs for a pullback towards 8777. A close under 8762 indicates a test of 8703 and 8683 to 8668 is likely. Below that 8539 should hold, if not a slip towards 8262 is likely. Resistance is at 8934 to 8963 beyond that 9044 and 9060 offer resistance. Above that 9083 and 9140 to 9156 should bring out seller. Above that 9197 Good Resistance.

A ship in Harbor is Safe.. but that's not what ships are built for.