Market Commentary - - Friday, 2 March 2007

FOREIGN EXCHANGE

EUR/USD closed lower on Thursday as it consolidated some of this week's gains but remains above the retracement level of the December-January decline crossing . Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. The low-range close sets the stage for a steady to lower opening on Friday. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

USD/JPY gapped down and closed lower on Thursday as it extended this week's decline. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes above the 10-day moving average crossing would confirm that a short-term low has been posted.

GBP/USD closed lower on Thursday and below the 10-day moving average crossing . The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed higher on Thursday. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are oversold and are turning neutral hinting that a short-term low might be in or is near. Closes above the 10-day moving average crossing would signal that a short-term low has been posted.

BULLION

Gold closed sharply lower on Thursday as it extended this week's decline and closed below the 20-day moving average crossing confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term.

Silver closed sharply lower on Thursday and below the previous reaction low crossing confirming that a top has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. Closes above the 10-day moving average crossing would signal that a short-term low has been posted.

U.S. STOCK MARKET INDICES

DJI closed lower on Thursday but well off early session lows due to short covering. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. SPI closed lower on Thursday as it extended this week's decline and spiked below the retracement level of the rally off last June's low crossing. The high-range close sets the stage for a steady to firmer opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. NDI closed lower on Thursday as it extended this week's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near- term.

ENERGY

Crude Oil closed slightly higher on Thursday after testing the retracement level of the December-January decline crossing. Profit taking tempered early gains however, the high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

Natural gas closed slightly higher on Thursday as it consolidated some of this week's decline after falling just short of testing the February low crossing in early trading. A short covering bounce ahead of the close tempered early losses and the high-range close sets the stage for a steady to firmer opening on Friday. Closes above the 10-day moving average crossing would signal that a short-term low has been posted.

COFFEE

Coffee closed lower on Thursday and below the 10-day moving average crossing as it extends this week's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If it extends this week's decline, February's low crossing is the next downside target

Market Commentary - -Thursday, 1 March 2007

FOREIGN EXCHANGE

EUR/USD gapped down and closed lower on Wednesday and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction high crossing are needed to confirm that a high has been posted. If it renews this this month's rally, the retracement level of this fall's rally crossing is the next upside target.

USD/JPY closed higher on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the 10-day moving average crossing would signal that a short-term low has been posted.

GBP/USD closed slightly higher on Wednesday as it extended last week's rally above the reaction high crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the 10-day moving average crossing will signal that a high has likely been posted.

USD/CHF closed higher on Wednesday and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction low crossing are needed to confirm that a low has been posted.

BULLION

Gold closed sharply lower on Wednesday as it consolidated some of last week's rally. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought, diverging but remain bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing would signal that a top has been posted.

Silver closed sharply lower on Wednesday as it consolidated some of last week's rally. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

U.S. STOCK MARKET INDICES

DJI closed higher on Wednesday and above the 10-day moving average crossing tempering the near term bearish outlook in the market. The high-range close sets the stage for a steady to higher opening on Thursday. SPI closed higher on Wednesday as it consolidated some of yesterday's decline but remains below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Closes above last week's high crossing are needed to renew last month's rally. NDI closed higher on Wednesday as it consolidated some of the decline off last week's high. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term.

ENERGY

Crude Oil closed higher on Wednesday and above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but are bullish hinting that additional short-term gains are still possible. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

Natural Gas closed lower on Wednesday as it consolidated some of last week's rally. The mid-range close sets the stage for a steady opening on Thursday. If it extends last month's rally, gap resistance crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

COFFEE

Coffee closed higher on Wednesday as it consolidated some of this week's decline but remains below the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. If it renews this year's decline, the 62% retracement level of this fall's rally crossing is the next downside target.

Market Commentary - Wednesday, 28 February 2007

FOREIGN EXCHANGE

EUR/USD closed higher on Tuesday and the high-range closes sets the stage for a steady to higher opening on Wednesday. Prices this week have seen a bullish upside breakout from a recent narrow and sideways trading range. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term.

USD/JPY closed lower on Tuesday and the low range-closes sets the stage for a steady to lower opening on Wednesday. Stochastics and RSI are turning bearish signaling that sideways to lower prices are possible near-term. Closes above the reaction low crossing are needed to signal that a short-term low has been posted.

GBP/USD closed lower on Tuesday. The mid-range closes sets the stage for a steady opening on Wednesday. Bull's still currently have the technical advantage. Stochastics and RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above this months trading range are needed to signal that a low has been posted.

USD/CHF closed lower on Tuesday and the low-range closes sets the stage for a steady to lower opening on Wednesday. Closes below the 20-day moving average crossing would signal that a short-term top has been posted. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term.



BULLION

Gold closed lower on Tuesday and the mid-range closes sets the stage for a steady opening on Wednesday. Closes below the 10-day moving average crossing will signal that a high has been posted. Stochastics and the RSI remain bullish signaling that sideways to higher prices are still possible. Closes above this month's high are needed to continue last week's rally.

Silver closed lower on Tuesday. The mid-range closes sets the stage for a steady opening on Wednesday. Closes below the 20-day moving average crossing would confirm that a top has been posted. Stochastics and the RSI remain bullish signaling that sideways to higher prices are still possible near-term.



U.S. STOCK MARKET INDICES

DJI closed lower on Tuesday and the low-range closes sets the stage for a steady to lower opening on Wednesday. Stochastics and RSI are overbought and are bearish signaling that a short-term top might be in or is near.

SPI closed lower on Tuesday and the low-range closes sets the stage for a steady to lower opening on Wednesday. It is likely there will be strong follow-through selling pressure on Wednesday morning. Stochastics and the RSI are turning bearish signaling that a high might have been posted.

NDI closed lower on Tuesday and the low-range closes sets the stage for a steady to lower opening on Wednesday. Stochastics and RSI are overbought and are bearish signaling that a short-term top might be in or is near.



ENERGY

Crude Oil closed slightly higher on Tuesday and the high-range closes sets the stage for a steady to higher opening on Wednesday. Bulls have recently gained confidence that a near-term low is in place, but those hopes may be dashed. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term.

Natural Gas closed lower on Tuesday and the low-range closes sets the stage for a steady to lower opening on Wednesday. Bulls had the slight near-term technical advantage, but are likely to lose it on Wednesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are likely.



COFFEE

Coffee closed down Tuesday. Prices closed nearer the session low amid the general selling pressure in many commodity markets today. Bulls are fading after showing some recent strength and the next upside price objective is the solid resistance at last week's high. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term.

Market Commentary - Tuesday, 27 February 2007

FOREIGN EXCHANGE

EUR/USD closed higher on Monday and above the retracement level of the Dec-Jan decline crossing thereby renewing this year's rally. The high range close sets the stage for a steady to higher opening on Tuesday. Closes below the 20-day moving average crossing would confirm that a short-term high has been posted.

USD/JPY closed lower on Monday as it consolidated some of last week's rally. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the 10-day moving average crossing would signal that a short-term low has been posted.

GBP/USD closed higher on Monday. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed lower on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold and are turning bearish hinting that sideways to lower prices are possible near-term. Closes above the 20-day moving average crossing would signal that a short-term low has been posted.



BULLION

Gold closed higher on Monday as it extended last week's rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. Close below the 20-day moving average crossing would confirm that a top has been posted. .

Silver closed higher on Monday. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. Close below the 20-day moving average crossing would confirm that a top has been posted.



U.S. STOCK MARKET INDICES

DJI closed lower on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and RSI are overbought and are bearish signaling that a short-term top might be in or is near.

SPI closed lower on Monday. The mid-range close sets the stage for a steady opening on Tuesday. Closes below the 20-day moving average crossing would confirm that short-term has been posted. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term.

NDI closed lower on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.



ENERGY

Crude oil closed higher on Monday. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes below the 10-day moving average crossing would signal that a high has been posted.

Natural Gas closed lower on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction low crossing would confirm that a short-term high has been posted.



COFFEE

Coffee closed down 125 points on Monday. Prices closed nearer the session low on a corrective pullback after solid gains last week. Bulls still have some upside technical momentum, amid the recent rallies in many commodity markets. Stochastics and the RSI are neutral signaling that sideways prices are possible near-term.

Market Commentary - Monday, 26 February 2007

FOREIGN EXCHANGE

EUR/USD closed higher on Friday and above the retracement level of the December-January decline crossing thereby renewing this year's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. The high-range close sets the stage for a steady to higher opening on Monday. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

USD/JPY closed lower on Friday as it consolidated some of last week's rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the 10-day moving average crossing are needed to continue last week's rally.

GBP/USD gapped above the 20-day moving average crossing and closed higher on Friday thereby confirming that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed lower on Friday and below trading range resistance crossing . The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing would signal that a short-term low has been posted.



BULLION

Gold closed higher on Friday as it extended last week's rally. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing would confirm that a top has been posted.

Silver closed above December's high crossing on Friday as it extended this year's rally. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.




U.S. STOCK MARKET INDICES

DJI closed lower on Friday and below the 10-day moving average crossing . The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought and are bearish signaling that a short-term top might be in or is near.

SPI closed lower on Friday as it extended last week's sideways trading range. The mid-range close sets the stage for a steady opening on Monday. Closes below the 20-day moving average crossing would confirm that a short- term top has been posted.

NDI closed lower on Friday as it consolidated some of last week's rally. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.



ENERGY

Crude Oil closed slightly higher on Friday as it extended last Thursday's rally above the retracement level of the December- January decline crossing. Profit taking tempered early gains ahead of the weekend and the low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes below the reaction low crossing are needed to confirm that a short- term top has been posted.

Natural gas posted an inside day with a higher close on Friday as it continued last week's rally and remains above the 10-day moving average. The mid-range close sets the stage for a steady opening on Monday. Closes below the reaction low crossing would confirm that a short-term top has been posted.




COFFEE

Coffee closed unchanged on Friday as it consolidated some of last Thursday's rally but remains above the 20-day moving average crossing . The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bullish signaling that sideways to higher prices are still possible. If it extends last week's rally, the reaction high crossing is the next upside target.