What’s Up, What’s Down: Bullish on the RBOB
Comments for Friday, November 20, 2009
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
ENERGIES:
Higher close yesterday for natural gas while lower for crude and heat along with the rbob. My sell signals for crude and heat are still good but so is my buy for the rbob although looking weak at this time. On the other hand, gas made a new CONTRACT LOW and then rallied to setlled higher. I can’t even remember how many times this reversal type action in the gas happened but didn’t follow through! Buy Signal for the RBOB.
GRAINS:
Higher closes for rough rice, soymeal and soybeans while lower for soyoil, Minneapolis, Kansas city and Chicago wheat along with corn and oats but no real changes technically. All of the wheat continue to be in gradual up-trends overall. Corn also had reversal type action today ending up below the magic 4 dollar price basis the December contract. What this probably means the grains are now set up for a long deserved correction. Rice closed higher still in its last resistance with its KEY REVERSAL from a week ago Wednesday still in tact. Oats also settled lower again now starting to act toppy but still in a long-term up-trend overall.The meal settled higher while beans and oil lower with no changes technically. All look higher but I’m still just missing a buy signal for the meal.
MEATS:
Higher cloing on Thursday for lean hogs, mixed for pork bellies while lower for live and feeder cattle. The cattle and feeders continue to be in strong down-trends overall with the latter making a new CONTRACT LOW AND CLOSE. Hogs settled higher again still in an up-trend making higher highs and lows since the middle of August.. However, the hogs have been acting toppy over the last several weeks and should be watched closely at this time. Bellies continue to look higher acting like they will soon test its October highs. Buy Signals for Feeder Cattle and Hogs; Sell Signal for Live Cattle.
See 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.