What’s Up, What’s Down: Oats Looking Bullish

Comments for Monday, October 5, 2009

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


Lower closes Friday for Minneapolis. Kansas City and Chicago wheat along with corn, rough rice, oats, soybeans, soymeal and soyoil. All of the wheat looks extremely bearish with KC and Chicago making new contract lows and closes. Corn has been basing since August and is forming a potential bottom but, at this time, I have no positions in this grain for the time being. I still have a buy signal in oats, it’s after selling off the last two trading sessions putting this grain back into the middle of a trading range going back to August. Also oats are now in a good support area. Rough rice also closed lower still in a down-trend making lower lows and lower highs overall. The bean complex closed lower with beans and meal making new recent lows and closes looking lower along with oil.

Oats Chart

Corn Chart


Lower settlements on the 2nd  for live and feeder cattle along with lean hogs and pork bellies again. The trend for the beef complex continues to be lower overall with the December cattle contract making a new contract low and close while the feeders made their lowest low and close, basis the November contract, since ’08 once again but this time not rallying. Hogs closed lower now in a bear triangle very close to giving me a sell signal. Basically trading sideways to lower over the last nine trading. I still have a buy signal barely in place. Bellies made their lowest low and close in a month. Now bellies are in a good support area but no trade recommendations at this time.

lean Hogs Chart

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.

See 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.