Comments for Friday, July 16, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
GRAINS:
Higher closes on Thursday for Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal, soyoil and oats while lower for rough rice All of the wheat continue to look strong overall with Minneapolis, KC and Chicago making their best highs and closes since last January. Corn rallied back to equal its best close since March 22nd continuing to trade near the upper end of a good resistance area and close to a buy signal. Rice settled lower and I’m changing from a bear pennant to a BEAR TRIANGLE.
Oats settled higher looking like they’re in a BULL PENNANT on a weekly chart starting to look like they’ll challenge their last highs. I’m still standing aside for the time being. The bean complex had a strong close with beans making its highest highs and closes since May 4th, meal since January 6th and oil in three weeks not quite giving me a buy signal. And oil settled higher while the meal closed lower this time.
Beans made their best high and close since May 5th now giving me a BUY SIGNAL and the oil in three weeks after a 100 point trading range and meal still look to move higher and although oil had its best high and close in three weeks. Meal is now in a larger BULL PENNANT also. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL 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.