Comments for Monday, October 11, 2010
Looking Ahead to Today by Reflecting Back at Friday’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.
GRAINS:
Higher to sharply higher closes Friday for rough rice, oats, corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. The yields for corn were the sharpest drop this late in the season that I can remember seeing fueling this sharply higher to limit up closes across the board. The wheat complex still looks lower technically while the Chicago wheat is in a strong resistance area at this time after having closed up the 60 point daily limit. Minneapolis and KC settled just off their highs making these two grains the only ones not closing up the limit in at least their front month. I HAVE A SHORT-TERM OPTION PLAY FOR THE WHEAT. CALL FOR DETAILS IF YOU ARE INTERESTED. Oats had its best close since October 2008 while rice since March 1st. The bean complex settled up the limit also being helped along by the corn along with the rest of the grains. Look for strong openings on Sunday night with the possible exception of the wheat. BUY SIGNALS FOROATS, ROUGH RICE, SOYBEANS, SOYMEAL AND SOYOIL. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS.
NOTE: Today is Columbus Day (also Thanksgiving Day in Canada) and while the stock exchanges are open, the cash bond market is closed. Some futures contracts will be closed for open-outcry (pit) trading but will still be open on their electronic platforms.
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.