What’s Up, What’s Down: Eurodollars Reached Contract High and Close Again

Comments for Wednesday, February 17, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action


Higher closes Tuesday for soybeans, soymeal, soyoil, oats, Minneapolis, Kansas City and Chicago wheat along with corn while lower for rough rice. All of the wheat continues had strong closes giving me BUY SIGNALS for all three. Corn continues to hold its present area coming close to a buy signal. Corn has held support under 350 extremely well so far as evidenced by recent action and is still forming a potential bottom formation. Everyone can see its support area between 325 and 350 basis the March contract. Also, most of the the bearish news is in the market and corn has been holding up well. Traditionally, grains fill around 90% of their gaps with the March corn contract having one at 392 1/2. However, at this time of the year, expect choppy action going into the planting season with little direction evident. Rice settled lower again forcing me to take away my buy signal and stay neutral for now unable to close over 14500 basis the March contract. Oats settled slightly higher coming very close to a buy signal but not quite and has been consolidating since January 22nd while now forming a possible bottom. There is very little resistance up to 255 basis the March contract posing a huge risk if taking a short position. The beans had their highest close in 2 1/2 weeks and the meal in 2 weeks again still both close to buy signals while in resistance areas. Oil settled strong this time now also close to a buy signal.

Wheat Chart


Higher closes Tuesday  for the Eurodollars, notes and bonds. The Eurodollars reached its contract high and close again still in the quietest bull market you’ll ever see but really haven’t gone anywhere since January 7th. The notes and bonds continue to both be near sell signals, especially the bonds. The notes are acting much better at this time.

Treasury Note Chart

Treasury Bond Chart

Read 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.

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