What’s Up, What’s Down: Grain Futures low, Higher for Gold and Silver
Comments for Monday, September 29
Looking Ahead to Today By Reflecting back at Friday’s price action
GRAINS:
Lower closes rough rice, Minneapolis, Kansas City and Chicago wheat along with oats, corn, soybeans, soymeal and bean oil.
All of wheat is still in downtrends but forming weak potential bottoms. Because of narrower action recently one strong up-day could turn the wheat higher. Of course you don’t assume that’s going to happen unless it happens, so the trend for wheat is still down.
Corn has been choppy but flattening out. Overall the trend is still lower but showing signs of basing. Oats also are in a downtrend trading basically between 325 and 350 with a double bottom at 323.
A close below 325 would continue to confirm its downtrend and a close above 350 to turn the trend higher. Rice closed lower but still in an uptrend. While beans, meal and oil are all in still in downtrends, they’re all forming small potential bottoms at this time.
INDICES:
Higher settlements for the cash and Dow futures along with the S&P’s,while lower for the Nasdaq. All of the indices continue to be in downtrends overall especially the Nasdaq. The Dow futures still have a KEY REVERSAL still in place.
MEATS:
Higher for pork bellies once again, unchanged to higher for live cattle, mixed for hogs again while lower feeder cattle. Cattle and feeder cattle continue to look very weak overall, while the hogs have been consolidating trying to form possible bottoms especially in the October contract. Also there is still gaps overhead to be aware of. The bellies closed strong and I’m still waiting for a settlement over 100 basis the February contract. Now its needs to settle over 100.
METALS:
Higher for gold and silver while lower for copper and platinum. Copper is still in a downtrend in a similar formations that it had formed in August before continuing lower. Gold settled higher while in a bull triangle but still in a strong resistance area. Silver is also in a resistance area forming a large potential problem but still in a downtrend overall. Platinum still in a downtrend.
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.