Comments for Wednesday, November 10, 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 to sharply higher closes Tuesday for rough rice, soybeans, soymeal and soyoil while lower for Minneapolis, Kansas City and Chicago wheat along with corn and oats. The crop production report was very bullish for beans and lesser so for wheat and corn which led to a lot of spread trading. What this did was push the wheat complex, oats and corn to lower closes after making new recent highs in reversal type action. Rice, on the other hand continued its streak of higher closes lately. The bean complex closed sharply higher with the beans making a new CONTRACT HIGH AND CLOSE. The overall trend for the grains is higher but keep an eye on the dollar and financials which may be indicating a possible turnaround which will affect most of the commodities bull markets at least in the short term if I get sell signals. 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 take this into consideration when taking POSITIONS. BUY SIGNALS FOR MINNEAPOLIS WHEAT, OATS, ROUGH RICE, SOYBEANS, SOYMEAL AND SOYOIL. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Wednesday, November 10, expands to 6 cents.
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.