Comments for November 22, 2010
Looking ahead to Monday by reflecting on Friday’s trading 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.
Wheat market looking bearish; Sitting on the sidelines for the Bean complex
GRAINS: 11/22/10 Higher closes Friday for Minneapolis wheat and rough rice while lower for, Kansas City and Chicago wheat along with corn, oats, soybeans, soymeal and soyoil. Minneapolis and KC continue their overall choppy sideways action since early August although both are near the lower end of their respective ranges. Chicago wheat, on the other hand, gave me a sell signal last Wednesday after breaking out of its trading reange and continues to look lower overall. Rough rice closed higher but has topped out technically and should be sold on rallies.Corn settled sharply lower making its worst close since October 7th. Oats have also been in a trading range since October keeping me on the sidelines along with the wheat complex. The bean complex settled sharply lower with the beans, meal and oil all in possible topping formations but no signals at this time also keeping me on the sidelines. ALSO DON’T FORGET THE GRAINS TEND TO FILL A MAJORITY OF THEIR GAPS and there are gaps left in KC wheat, beans and meal. So be sure take this into consideration when taking POSITIONS. SELL SIGNALS FOR CHICAGO WHEAT, CORN AND ROUGH RICE. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Monday, November 22, will remain at 6 cents.
Special Note for Cattle Traders: Last Friday afternoon the USDA released the monthly Cattle On Feed Report.
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 or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.