Comments for Wednesday, August 11, 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 Tuesday for rough rice but lower for the corn, oats, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. All of the wheat settled lower but are still in uptrends overall. The problem is there is little support near their present levels and Minneapolis along with Chicago wheat are in small BEAR PENNANTS at this time. Normally, a small bull or bear pennant may not be a big deal but after the overall wheat rally, a failed pennant(s) can be indicative of a sharp retracement! Also, A KEY REVERSAL is still in place for Minneapolis wheat. The unwinding of wheat/corn and spreading against the beans should now be over. Corn also settled lower with strong resistance up to 450 basis the December contract and HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!
I really feel corn will continue in a choppy sideways trading range for a while with the bulls focusing on China buying down the road and the wheat while the bears will talk about the huge crop potentially on the way. Oats settled lower but still is in a strong uptrend overall. Rice closed higher but is in a small BEAR FLAG. The bean complex settled lower but with no changes technically continuing to look higher overall along with the meal. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN, OATS AND ROUGH RICE. CALL FOR DETAILS!
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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.