Buy Signal in Rice; New Contract High for Hog Futures
Comments for Wednesday, April 7, 2010
Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action
GRAINS:
Higher settlement Tuesday for corn, rough rice, Minneapolis, Kansas City and Chicago wheat along with oats, soybeans, soymeal and soyoil. All of the wheat had large ranges settling higher in the end but still are in strong downtrends overall. Looking at the May contracts Minneapolis has resistance over 510 while KC and Chicago have resistance over 490. Corn settled higher again but has been trending lower since February.
Oats settled higher still in a BEAR PENNANT OR TRIANGLE with a DOUBLE BOTTOM at contract lows. Rice also settled again but this time giving me a BUY SIGNAL with its highest high and close since March 10th. The bean complex closed higher but no changes technically for the beans and meal continuing to be neutral for me with the beans in a 925-975 trading range since the beginning of February. Oil had a large range but closing strong with its highest high and close since March 15th. There is resistance over 4000 basis the May contract and now could be turning back up. Still this market is neutral like the rest of the bean complex. BUY SIGNAL FOR ROUGH RICE. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG, CORN AND OATS. CALL FOR DETAILS!
MEATS:
Lower closes for live and feeder cattle along with lean hogs and pork bellies. The cattle and feeders made new recent highs while the hogs made new CONTRACT HIGHS before settling lower in reversal type action. However, all of the meats are still in strong uptrends overall. Bellies close sharply lower ending just above the daily 300 point limit but still holding its uptrend line. BUY SIGNALS FOR LIVE AND FEEDER CATTLE ALONG WITH LEAN HOGS. CALL FOR DETAILS!
Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.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. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.