Comments for Wednesday, October 27, 2010
Looking Ahead to Today by Reflecting Back at Tuesday’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.
GRAINS:
Higher closes yesterday for Minneapolis, Kansas City and Chicago wheat along with rough rice, oats, soybeans, soymeal and soyoil. Minneapolis and KC have been in a trading range, albeit a wide one, since August still unable to break out of their respective resistance areas so far causing me to remove my sell signals and stand aside. However, my sell signal for Chicago wheat will remain although not a strong one at this time. Wheat had previously rallied off of bullish fundamental news in Russia but now has settled into basically choppy action.
Long-term the wheat has the potential to rise if the rest of the grain complex continues higher but the action shows it being pulled higher at the present time. Corn closed higher but unable to stay near its high and sold off near the end of the trading session but is still in a strong bull market overall. Oats settled higher again also in a strong uptrend showing. Rice made its best high and close since December 14th, 2009. The bean complex settled slightly higher all in uptrends also.
DON’T FORGET THE GRAINS TEND TO FILL A MAJORITY OF THEIR GAPS and there are gaps in KC wheat, corn, beans and meal so be sure to take this into consideration when taking POSITIONS. BUY SIGNALS FOROATS, ROUGH RICE, SOYBEANS, SOYMEAL AND SOYOIL. SELL SIGNAL FOR CHICAGO WHEAT. CALL FOR DETAILS!
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.