Both DBA and CORN broke their respective trendline resistance on daily charts. However, we have a mixed picture: while CORN broke it and held, it seems to be consolidation around the 44.40-46.44 area. I would move the stop to breakeven, around the 44.65 are/brake of trendline for capital preservation purposes. My hypotesis works ro see some consolidation in this area before moving further up, supported by contration of BB´s. Price action breaking the trendline support (previously resistance) will take me out of the position in oirder to reases. Hourly chart suggests a possible inverted H+S pattern with resistance around 48.18
DBA´s price action broke of 1st resistance @32.95 (as marked on previous post from July 12) and went almost to the tick of the 2nd one @33.50, to retrace pretty much all of teh advance. shorter term charts suggest some consolidation, as CORN, but with a lesser degree of upside. I was taken out of the position, although will watch closely, if price action and indicators suggest upside to resume.
Copper/JJC proved to be a accurate in leading the broad market. It has also been consolidating and is currently overbought in most time frames (daily, 1hr, 30m, 15m, and 5m) – futures (HGU1) are a tad below the opening price, currently @4.41.
This next week should prove interesting as there quite a few important companies reporting this week. A peak at the following days via WSJ Markebeat
Monday: Earnings come faster and furiouser this week. Halliburton, Wynn, IBM and Hasbro tell us how things are rolling. On the economic front, the National Association of Home Builders tells us that the housing market still stinks.
Tuesday: Sexy tech earnings (Apple!) compete with dour financial earnings (Bank of America, Wells Fargo, Goldman Sachs, Bank of New York Mellon, Keycorp) for our attention. Others reporting include: Johnson & Johnson, Harley-Davidson, CSX, Yahoo! and Chipotle Group. Economic news includes Housing Starts and Building Permits. In other words, more cheery home-front news.
Wednesday: More tech — Intel, Ebay, Xylinx, Qualcomm — but still plenty of finance, including American Express, PNC and U.S. Bancorp. Altria, Abbott and United Technologies also report. Smoke ‘em if you got ‘em. Economics: Existing Home Sales (ack).
Thursday: Initial weekly jobless claims (below 400K?) and still more earnings, including Advanced Micro Devices, Lilly, Nucor, Microsoft and Morgan Stanley. Fed Chief Ben Bernanke talks about Dodd-Frank in DC, the Index of Leading Indicators will lead us in a bearish direction and Philly Fed regional survey will do likewise.
Friday: Honeywell, Verizon, Caterpillar, McDonald’s and GE highlight a light-ish but crucial earnings day. Economic news is scant. Expect folks to race to the beach on Friday afternoon.