What’s Up, What’s Down: Energies and Financials
Comments for Monday, August 16, 2010
Looking Ahead to Today by Reflecting Back at Friday’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.
ENERGIES:
Higher closes last Friday for natural gas while lower for crude and heating oil along with the rbob. The crude, heat and rbob continue to retrace lower with the crude making its worst low and close since July 13th, heat July 7th and the rbob ( SELL SIGNAL) May 25th. The crude is in a trading range (roughly 7500-8000 basis the October contract) since the end of June while along with heat, remains near a sell signal. Gas settled higher now in a small BEAR PENNANT still in a strong support area (440-460 basis Sept). This is its last support area before approaching contract lows! SELL SIGNAL FOR THE RBOB. CALL FOR DETAILS!
FINANCIALS:
Higher closes for notes and bonds while lower for the Eurodollars. The bonds made a new CONTRACT HIGH AND CLOSE with all of the financials in long-term uptrends overall mainly due, in my opinion, because of ‘flight to quality’. BUY SIGNALS FOR THE EURODOLLARS, NOTES AND BONDS. 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.