December Dow - The market spent Monday shaking off earlier weakness and trying to work back toward the 1 X 1 Gann line, which you’d expect of a bear market on a Monday. A steady to higher trade Tuesday should set up a selling pattern on Wednesday.

If you cannot view the December Dow chart, go here.

December T-Notes - As projected, the notes broke out of their bull flag last Thursday, rallying up to 111-14 today. I would expect a sideways to lower trade Tuesday, with a possible low of 110-28, before the notes rally again Wednesday. Our upside target is 112-15.

If you cannot view the December T-Notes, go here.

December Silver - In my view, silver is over-valued. The market has recently been scaling up the 2 X 1 Gann line, but that steep of a trend is difficult to sustain. A steady to higher opening Tuesday could set up a selling opportunity. 

If you cannot view the December Silver, go here.

December Canadian Dollar - This market’s over-extended trend resembles the flight characteristics of a pop-bottle rocket! Any moment now, it’s going to tip over and come tumbling back to earth.

If you cannot view the December Canadian Dollar, go here.

December Japanese Yen - A little more than a week earlier, I wrote, “A dip to 86.70 should be seen as a buying opportunity.” After testing a low last Thursday of 86.69, the market turned -- rallying 101 points to close at 87.70. The market continued higher again both Friday and today, as well. Our upside target is pegged at 89.60.

If you cannot view the December Japanese Yen, go here.

December Wheat - Ding! Ding! Ding! Monday’s early weakness was all we needed, as the wheat pushed just beyond our downside target of 7.75, before bottoming at 7.73.

If you cannot view the December Wheat, go here.

December Soymeal - Our downside target is pegged at 247.00.

December Coffee - Last week, I wrote, “Two and three-day rallies should continue to offer selling opportunities, as the December futures work down toward their July lows.” But there’ve been few rallies from which to sell; the market is just too weak.

If you cannot view the December Coffee, go here.

March Sugar - A steady to lower trade Tuesday -- possibly to 9.80 should offer a buying opportunity, as nearby Gann support should stem the sell off.

If you cannot view the March Sugar, go here.

REVERSAL DATES FOR THE WEEK of November 5, 2007

MONDAY -- Hogs, Soybeans, Bean Oil, Silver 
TUESDAY -- Crude, Unleaded Gas, Heating Oil, Cotton
WEDNESDAY -- Wheat
THURSDAY -- Cattle, Gold, J-Yen
FRIDAY -- Corn, Soybeans

CURRENT RECOMMENDED POSITION

MARKETS TO WATCH:

1-DECEMBER GOLD – Gold continues to move higher, after confirming the bullish TC pattern on October 26.  The reverse/forward count suggests another bullish leg that could extend into the next reversal date due on 11/8, with a target in the $820.00 area.

2-DECEMBER SILVER –The bullish trend is still in control, as the Silver punched through resistance and closed above the previous pivot high, confirming a new TC pattern in the process. The reverse/forward count -- from the new TC pattern -- projects a new Reversal date due on 11/19 and a price projection near $15.50.

3-JAPANESE YEN – The recent Reaction swing bottomed on its seventh day and  near the 20-day SMA support. Typically, any correction lasting over seven days will continue lower, therefore the reversal on Thursday was critical to continue the bullish cycle and for the confirmation a longer-term TR pattern. A trade above 8841 will be enough to confirm the reaction swing and trigger the buy signal.

4-DECEMBER DOW – Last week, I said there was a bearish reaction swing, as well as a major TR pattern developing in the Dow. The next day, the Fed lowered the rates and the bearish trigger price (13790) was penetrated, confirming the sell signal. The reverse/forward count, for the new TR pattern, projects 11/20 as the next major reversal date, with an R Line target of 13,000.  I look for continued pressure into the 11/20 Reversal date.

5-DECEMBER TREASURY BONDS – The spike down to the 20-day SMA, after the Fed announcement, acted as a springboard for the market to resume the upward trend and confirm a new TR pattern. The market closed strong on Friday, but it also closed against the center line resistance, which could cause the market to pull back slightly on Monday and Tuesday, before resuming the upward trend. Use this short-term correction as a buying opportunity.

6-DECEMBER COFFEE – Coffee broke support and closed below the previous pivot low. A quick glance and this formation appears to be bearish, but I’m not so sure. It has all the makings of a possible failed swing pattern that could turn very quickly.  A trade above 122.00 would confirm the bullish reversal and trigger a quick rally to 126.50.

7-JANUARY SOYBEANS – Thursday’s outside day, followed by Friday’s narrow range inside day, has shed a bearish tone over the market. The Soybeans are also drifting away from the center line, which is another sign of a weakening market. I will stand aside to see if Monday’s reversal date sets up a sell pattern before recommending a position. 

8-DECEMBER HEATING OIL – The market has extended beyond the Reaction Line target of 2.5200 and continues higher, as it approaches the 11/6 reversal date. At this point, the bullish cycle is near completion, suggesting a correction is due. 

*Due to the volatility of the markets, all trade recommendations are subject to change without notice.

How to use the Reversal Dates

Every good trading signal needs three key elements to be considered a successful signal. Time, Price and Pattern. When these three come together, great things can happen. If you can improve your timing or price entry, it can enhance any trading method. That is what the Reversal Dates can do for you. They will identify when the market should react, and at what price level the market needs to be for this to happen. They will even tell you what the market has to do to confirm the trade. The first thing I do is, identify Time.

TIME
The Reversal Date Indicator consists of three parts. The first is Time. This is identified by the projected Reversal date and will indicate which markets are ready to react and when the reaction should occur. The most common misconception about the Reversal dates is the idea that the market must reverse on every signal date, which is not true. Instead, The Reversal Date itself helps to identify the market's reaction. A high percentage of the time, the market will reverse the current trend, but not always. A smaller percentage of the time, the market will form a "continuation pattern," indicating the market will likely continue in the same direction as the prevailing trend. Often this will occur during a consolidation or after a very small correction.

PRICE
Once the Reversal date has been identified, the next thing to do is monitor the price. If the market is making a new high/low, or if it is trading inside a buy/sell window, then the second component of a trade signal is in place. You now have Time and Price working together. For most traders, that will be enough, but the Reversal Date Indicator takes it one step further.

PATTERN
After extensive research into price patterns, I have identified specific price patterns, which occur during reversal timing. These patterns can be used to confirm the market reversals or market continuations. When, and only when, these three components are all working together, will there be a trade signal generated.

Traders Market Views is a product of Traders Network and all statements herein reflect Traders Network's market research. Traders Network and/or its principals, brokers and employees may or may not have established positions in part or all of the markets herein mentioned. It is possible that some of those positions, if any, are in direct conflict with the market commentary herewith.

THE RISK OF LOSS IN TRADING COMMODITY CONTRACTS CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER-COMPENSATED FOR THE IMPACT IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES.