Comments for Wednesday, April 30 (reflecting back at Tuesday's price action)

ENERGIES:
API/EIA Energy Stocks Released today. Sharply lower closes across the board causing failed bull pennants for the heating oil and rbob. All of the energies continue to look higher overall but must be watched carefully to see if there is a strong follow through from today's action signally a retracement beginning or even tops forming .

CURRENCIES:
Higher closes for the Japanese Yen and dollar index while lower for the British Pound, Canadian Dollar, Euro Fx, Swiss Franc and Aussie Dollar. The euro broke down from its bear pennant, the francs forming a larger bear pennant and yen all closed higher form the bear pennant. All of these currencies continue to look lower. The pound, settling sharply lower, has been hurt by today's action. It needs to hold 11509 basis the June contract and, for the most part, has been making lower highs and lower lows since early March. This is a critical area to hold if the pound is going to have any chance of bottoming.

The Aussie Dollar closed lower and is now in a larger bear pennant. This market is still is bullish overall but is forming a possible top. The Canadian dollar closed one tick lower; technically remaining the same. It has strong resistance over 100 and has been in a sideways market overall since the end of January. The dollar index closed higher breaking out of a bull pennant to the upside and is still forming a possible bottom.

MEATS:
Higher for pork bellies, sharply lower for lean hogs while lower for live and feeder cattle. New recent highs and closes for cattle, feeders and hogs. June cattle made a new recent high and close right at the low end of strong resistance. Cattle should continue higher but feeders have been hurt by the action of the last 2 trading sessions.

Gapping lower on Monday and Tuesday tells me the feeders (basis the August contract) could retrace down to the 106.25 area mainly due to the problems corn is having due to too much rain and freeze scares. Hogs gapped and settled 10 points from its 300 point daily limit basis the June contract. Now hogs are at the beginning of a strong support area that drops down to the 70.00 area. Corn has had the same effect on hogs as it has had on feeder cattle. Bellies made a new recent low before rallying to close higher. An island reversal is still in place at the lows and is forming a possible large bottom at this time.

Interest Rates:
FOMC Meeting today. Higher closes across the board again ahead of the results from the Fed meeting but there are no changes technically at this time. All of the financials continue to look lower overall.

INDICIES:
Today's Releases: Employment Cost Index, GDP (q1 '08). NAPM Chicago, Existing Home Sales. FOMC Meeting. A higher close for the Nasdaq, but lower for the cash and Dow futures along with the S&P's and Nikkei. All of the indices are acting like they will continue moving higher overall. The Island Reversal for the Nikkei is still in place.

GRAINS:
Sharply lower closes for all of the wheat and rough rice while lower for corn, oats, soybeans, soymeal and bean oil. What's interesting is with all of the bullish fundamental news out there the grains have been basically struggling to move higher. Although corn has been near its highs it still hasn't been able to take them out although I do expect that to happen. Congress is now talking about lessoning the increase of ethanol production through 2020 probably due to the outrage from many countries that are in a food crisis at this time. Minneapolis, Kansas City and Chicago wheat are all in support areas at this time although its a fairly weak support for Minneapolis wheat. July corn took a run at contract highs, failed and sold off close to 16 cents settling lower. Still corn is very bullish overall. Also corn plantings are still the furthest behind in 21 years. Oats spiked higher and also sold off sharply (30 cents) from the daily high settling over 10 cents lower for the trading session. Oats still need to close over 400, not just trade over it like today, to turn this market higher or close below 375 basis the July contract to turn it lower. Rough rice closed down the daily limit again which was expanded to 75 points today. The bull market rally for rice looks officially over for now. The bean complex closed lower again but not as bad a yesterday's action.

METALS:
Lower closes across the board this time. Copper is still bullish overall while continuing in a consolidating mode over the last month. Silver broke out of bear flag and gold a bear pennant to the downside which is usually indicative of these markets moving lower. Platinum also settled lower breaking out of a bear pennant to the downside and finally showing signs of turning lower.

Rick Alexanderhas been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com.