What’s Up, What’s Down: Mixed Signals in Wheat

Comments for Wednesday, April 21, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action


Higher to sharply higher closes yesterday for corn, soybeans, soymeal, soyoil, and Minneapolis, Kansas City and Chicago wheat along with oats while lower for rough rice. All of the wheat settled sharply erasing Monday’s sharply lower closes still in long-term downtrends but are forming nice-looking potential bottoms at this time.

Rice closed lower for the seventh consecutive trading session continuing to retrace lower while forming a possible bottom.

Corn also settled holding 343-350 area so far while still in a down-trend overall. The next resistance level is around 370.

The beans settled lower but are in a small BULL FLAG as seen below looking to continue higher while also helped along by spread trading between the grains.

The meal made its highest close since January 19th this time giving me a BUY SIGNAL but bean oil closed down sharply keeping me in a neutral stance for now. BUY SIGNALS FOR SOYBEANS AND SOYMEAL. SELL SIGNALS FOR MINNEAPOLIS , KANSAS CITY AND CHICAGO WHEAT ALONG WITH OATS. CALL FOR DETAILS!

Wheat Chart

Corn Chart


Higher closes for the dollar index, British Pound, Canadian and Aussie Dollar while lower for the Euro Fx, Swiss Franc and Japanese Yen.

The euro and franc settled lower for the fourth trading session in a row causing me to be neutral at this time while they continue to be in a down-trends overall.

The yen closed over ninety points lower taking away my buy signal and also putting me in a neutral stance with its long-term trend lower.

Canadian Dollar made its lowest low in over two weeks but its up-trend is still intact. The pound also closed lower but has struggled since I got my buy signal while the Aussie Dollar made its lowest low in two weeks still in a good up-trend overall.

The dollar made its highest high and close in a week but has basically been trading between 8000 and 8200 (June) since the beginning of February. BUY SIGNALS FOR THE DOLLAR INDEX, BRITISH POUND, CANADIAN AND AUSSIE DOLLAR. CALL FOR DETAILS!

Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

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. If you would like a free booklet explaining the charts mentioned above, 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.

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