Comments for Wednesday, July 21, 2010
Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action
GRAINS:
Higher closes Tuesday for soybeans and soyoil while lower for rough rice, Minneapolis, Kansas City and Chicago wheat along with soymeal, corn and oats. Minneapolis made what looks like a KEY REVERSAL on Monday closing lower again along with KC and Chicago wheat but all are still in uptrends overall.
Corn also settled lower but is in a very strong support area still looking strong since breaking out last week. Rice settled lower and has been rising gradually over the last couple of weeks but this retracement has only been for a little over 20 cents while the weekly chart shows a BEAR PENNANT in place.
Oats also settled lower again but is in a BULL PENNANT also on the weekly chart meaning it should work higher overall. The beans and oil settled higher while the meal ended up down. The beans, meal and oil continue to look higher at this time with the oil forming an even larger potential bottom. 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!
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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.