What’s Up, What’s Down: Spotlight on Softs

Looking ahead to Tuesday by reflecting back on Monday’s trading

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors

THE SO-CALLED “SOFTS” LOOKING QUITE SOFT

SOFTS: 11/29/11

LUMBER:  Lumber followed through lower again or its fifth session in a row now below most of its support but act the lower end  acting like its will test contract lows at this time. Of course lumber has been in a long-term downtrend dating back to the beginning of the year but I’m still on the sidelines looking for a new sell signal.

001 chart

COCOA: Cocoa made another new CONTRACT LOW AND CLOSE looking extremely bearish overall falling since February. SELL SIGNAL. CALL FOR DETAILS!

002 chart

SUGAR: Sugar settled higher this time but means very little technically since its been falling starting back in August. Now its nearest resistance starts above 2400. SELL SIGNAL. CALL FOR DETAILS!

00 chart

Follow all my softs futures comments at my Softs Futures blog (https://softsfuturesupdate.com)   

Rick Alexander has 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 or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.