What’s Up, What’s Down: Spotlight on Softs
Comments for December 13, 2011
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
BEARISH OPINIONS ABOUND FOR THE “SOFTS” FUTURES CONTRACTS
SOFTS: 12/13/11
SUGAR: Sugar settled lower again with its double top at 2425 still in place looking very bearish overall in a downtrend since August. Sugar’s nearest resistance starts above 2400 with the 2500 area right in the middle. SELL SIGNAL. CALL FOR DETAILS!
COTTON: Cotton closed sharply lower making lowest lowest low and close since December 2010. Now there is good resistance above 9000 and much more from 9500 to 10500 and very little support underneath making making today’s settlement below 9000 very bearish in my opinion. SELL SIGNAL. CALL FOR DETAILS!
COFFEE: Coffee also settled sharply lower with its worst low and close since last December. Also, closing below 225 looks very bad if you’re a bull. Also, coffee has been in a down-trend since the beginning of September on the daily chart and May on the weekly one. A close over 240(only once since Oct. 24th) first and confirmed by a close over 250 is what’s needed to turn this market around at this time in my opinion. SELL SIGNAL. CALL FOR DETAILS!
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.