Comments for December 1, 2010
Looking ahead to Wednesday by reflecting on Tuesday’s trading 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
Sell Wheat on Rallies? Stand-aside in Beans?
GRAINS: 12/01/10: Higher closes yesterday for Minneapolis, Kansas City and Chicago wheat again along with rough rice,l oats, soybeans, soymeal and soyoil but lower for corn. Minneapolis and KC continue to be in sideways patterns since early August but now back in the middle of that range after holding critical lows. Chicago wheat still looks the weakest of the wheat complex and should be sold on rallies at this time in my opinion. Rough rice closed higher again now forming a potential small bottom with support under 130 basis the January contract. Corn settled lower and should continue moving lower overall. Oats made its weakest low since October 4th again but then rallied to settle higher in reversal type action this time. A key area to hold is around 330 basis the March contract as I continue to stand aside. The bean complex settled slightly higher but with no changes technically that I can see. All are still in possible topping formations. I don’t have any signals at this time for the bean complex. ALSO, DON’T FORGET THE GRAINS TEND TO FILL A MAJORITY OF THEIR GAPS and there are gaps still left in KC wheat, beans and meal. So be sure take this into consideration when taking POSITIONS. SELL SIGNALS FOR CHICAGO WHEAT, CORN AND ROUGH RICE. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Wednesday, December 1 will revert back to 4 cents.
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 email@example.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.