What’s Up, What’s Down: Meats and Metals
Comments for Friday, August 20, 2010
Looking Ahead to Today by Reflecting Back at Thursday’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.
METALS:
Sharply higher closes yesterday for copper and gold while lower for silver and platinum. Copper (Sept) hasn’t yet gotten through its resistance area (34000) basis the December contract yet and the longer it takes could hurt its upward momentum which has stalled over the last couple of weeks or so. Copper is acting toppy but, at the same time, could be forming a bull triangle. We’ll find out soon enough!
Gold made a higher high (highest since June 1st) for the 7th trading session in a row and also its highest close since June 30th now in the heart of its last resistance area.
Silver settled lower, however, from the spreading of gold against the silver due to the sharply lower closes for the indices as I’ve explained before. Still, silver has basically been trading sideways since the beginning of April causing me to continue to stand aside.
The October platinum also has been basically trading sideways between 150 and 160 since the middle of May as I’m continuing to stand aside also after another lower close. However, now this metal is at the lower end of this range needing to hold 15000. BUY SIGNALS FOR COPPER AND GOLD. CALL FOR DETAILS!
MEATS:
CATTLE ON FEED. COLD STORAGE.
Sharply higher closes Thursday for live and feeder cattle while the hogs made their best high in around three weeks before selling off to close lower in reversal type action likely due to spread trading ahead of the feed and cold storage reports.
The cattle and feeders both made new CONTRACT HIGHS AND CLOSE giving me n obvious buy signal in the feeders. However, I just really missed this trade because of how I get my signals and I would recommend buying at these levels.
Please call me for the best strategy to take. Hogs have been trending higher since May which I also too conservatively played but that’s hindsight anyway. Also, today’s action may be signifying a retracement is on the way. BUY SIGNALS FOR THE LIVE AND FEEDER CATTLE.CALL FOR DETAILS!
There has been a lot of talk and advertising for Gold exchange traded funds (ETFs). Do you understand the difference, from a trader’s point of view, between gold futures and gold ETFs? Download my comparative evaluation report at https://www.zaner.com/3.0/ralexGold.asp.
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.