Comments for November 23, 2011
Looking ahead to Wednesday by reflecting back on Tuesday’s trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
WATCH THE GAP IN CORN
GRAINS: 11/23/11>: Higher closes yesterday for corn, soybeans, soymeal and soyoil, mixed for oats while lower for Minneapolis, Kansas City and Chicago wheat along with rough rice. Minneapolis and KC made their lowest lows and closes since September for the former and July 2010 for the latter. It didn’t take long for Minneapolis to catch up with KC and Chicago on the downside once its fall began. Also, Minneapolis is now in a support area. Corn (March) still has a gap at 698 with strong resistance from 650 to the 700 area with the major portion from 650 to 675. History says the odds are this gap will be filled but corn’s obvious struggle to fill its gap has been duly noted in the December contract so far. Corn settled higher but showed little life for the upside. Rice made its lowest low and close since the middle of March continuing its overall plunge since early September. Also rice has closed lower seventeen out of its last twenty trading sessions and six in a row. Oats closed mixed with the December contract making a new recent low and settling higher in reversal type action but not the March contract made it lowest low and close since June 14th, 2010 and have been making lower highs and lows since late August. The beans complex settled higher this time but not before the January bean contract made its lowest close since November 20101 and meal since May 17th of this year. Finally, the dollar rallying along with weak export demand for quite a while including Japan buying corn elsewhere last week are not good signs! SELL SIGNALS FOR MINNEAPOLIS,KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL AND SOY OIL ALONG WITH ROUGH RICE AND OATS. CALL FOR DETAILS!
The complete Thanksgiving holiday trading schedule for US futures exchanges is posted at my Hot Topics website (http://www.zaner.com/3.0/market_information/hot_topics.asp)
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 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.