Comments for Wednesday, November 3, 2010
Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors.
GRAINS:
Higher closes for rough rice while lower to slightly lower for soybeans, soymeal, soyoil, corn, oats, Minneapolis, Kansas City and Chicago wheat. I still don’t have any signals in the wheat complex at this time and you can see, by looking at the Chicago wheat chart below, it has been basically in a sideways pattern since early August. However, Minneapolis wheat is very close to a buy signal.
Corn settled slightly lower still in a strong uptrend overall with a gap below. Oats settled lower also but like most of the grains is in a strong uptrend overall acting like it will test its recent highs. Rice followed through sharply lower after being limit down on Monday but then proceeded to rally and close higher in reversal type action. The bean complex closed slightly lower with the beans, meal and oil in BULL PENNANTS meaning they should continue higher for at least the near term.
DON’T FORGET THE GRAINS TEND TO FILL A MAJORITY OF THEIR GAPS and there are gaps in KC wheat, corn, beans and meal so be sure to take this into consideration when taking POSITIONS. BUY SIGNALS FOR OATS, ROUGH RICE, SOYBEANS, SOYMEAL AND SOYOIL. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Wednesday, November 6, will be 6 cents.
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.
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.