What’s Up, What’s Down: Outlook for Energies and Grains

Comments for Monday, July 26, 2010

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


Lower closes on Friday for crude and heating oil along with the rbob and natural gas. The crude, heat and rbob all made recent highs before settling lower in reversal type action. The Sept. crude contract needs to close over 8000 while the heat and rbob are up against important areas to break out of if they’re going to have a significant rally from these levels. For now I continue to stand aside. Gas settled lower and is now in a small BULL PENNANT continuing to be in a down-trend overall but also holding a strong support area between 420 to 460 basis the September contract. SELL SIGNAL FOR NATURAL GAS. CALL FOR DETAILS!

Crude Oil Chart

Natural Gas Chart


Higher closes Friday  for soybeans, soymeal, rough rice, oats, Minneapolis and Chicago wheat while lower for corn, Chicago wheat and soyoil. Minneapolis and KC made new CONTRACT HIGHS AND CLOSES again while Chicago settled one tick lower all continuing to be in bull markets overall. Corn closed lower again after penetrating 400 (Dec.) but unable to hold it last Thursday.

The last time corn was over 400 I saw a lot of farmer hedging and cash forwarding. So if corn happens to close over that magic price. Donât go long but wait for a pullback, which I feel will happen again. Rice settled higher again this time making its best high and close since June 24th and did cause a failed bear pennant (Thursday) on the weekly chart. Oats also closed higher again and should work higher overall. Oats, however, are at the same price area as a month ago. The beans and meal settled higher while the oil lower this time off of meal/oil spreading.. However, the bean complex continues to look higher overall. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN AND OATS. CALL FOR DETAILS!

Corn Chart

Soybean Chart

Soybean Meal Chart

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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.