Comments for December 15, 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
What do failed consolidation formations mean for the Wheat and other Grains?
GRAINS: 12/15/10: Sharply lower closes yesterday for Minneapolis, Kansas City and Chicago wheat while lower for rough rice, oats, corn, soybeans, soymeal and soyoil. Minneapolis, KC and Chicago all had failed consolidation formations meaning they could retrace lower from their current levels while making their worst lows and closes in 7-8 trading sessions. Minneapolis has good support under 800, KC 780 and Chicago 750 all basis the March contract. My sell signal for corn is wavering even after corn settled slightly lower but is still in a resistance area at this time. Rice settled lower with my sell signal in tact but is in a difficult area to trade in my opinion. Oats settled lower but is in a small BULL PENNANT looking very strong overall. The bean complex settled lower this time but beans did make a new recent high (since 11/15) before settling down in reversal type action. Meal has been stuck in a large, choppy trading range but gradually working higher overall. The beans and oil look stronger technically at this time. BUY SIGNALS FOR SOYBEANS, SOYOIL, MINNEAPOLIS AND KANSAS CITY WHEAT. SELL SIGNALS FOR CORN AND ROUGH RICE. CALL FOR DETAILS!
Special Note for Cotton Traders: The daily price limit for Wednesday, December 15 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.