Comments for Tuesday, July 20, 2010
Looking Ahead to Today by Reflecting Back at Monday’s Price Action
GRAINS:
Higher closes Monday for rough rice while lower for Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal, soyoil and oats. Minneapolis made what looks like a KEY REVERSAL while KC and Chicago wheat just closed lower but all are still in uptrends overall. Corn also settled lower unable to sustain its three day really but still looking strong since breaking out last week while now in a strong support area. Rice settled higher showing some signal of life but the weekly chart shows a BEAR PENNANT in place.
Oats also settled lower but in a weekly BULL PENNANT meaning it should work higher overall. The bean complex also had a strong close with beans making its best high and close since January, meal since December and oil its best close since early May giving me a BUY SIGNAL too. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN AND OATS. SELL SIGNALS FOR SOYOIL AND ROUGH RICE. CALL FOR DETAILS!
MEATS
Higher closes yesterday for live cattle and feeder cattle but lower lean hogs. Cattle had its best high and close since May 13th continuing to head towards its resistance between 9400 and 9500 basis the August contract. The feeders continue to gradually work higher also with its best close since May 14th finally settling over 11400 basis the August contract.
Now there is good resistance from the 11500 area up to 117500. Hogs made its highest high in 2 weeks before closing lower also settled lower but no changes technically still being in a downtrend overall. BUY SIGNAL FOR LIVE A ND FEEDER CATTLE. SELL SIGNALS FOR LIVE CATTLE ALONG WITH LEAN HOGS. 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.