What’s Up, What’s Down: Spotlight on Grains
Comments for February 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
DESPITE A LONGTERM UPTREND OVERALL, I STILL HAVE SELL SIGNALS FOR BEANS, OATS AND WHEAT
GRAINS: 2/23/11: Sharply lower closes yesterday for Minneapolis, Kansas City and Chicago wheat along with oats, rough rice, soybeans, soymeal and soyoil. Remember how I warned the bulls to be careful since everyone seemed to be bullish which almost always leads to sharper corrections than normal especially when you add the funds into the equation. I now have quite a few sell signals but most of the grains are at or near their respective support areas. The grain complex, longterm, is still in an uptrend overall as we approach the planting season. Minneapolis and KC now have SELL SIGNALS joining Chicago from last week. Minneapolis made its worst low and close since January 13th and KC since January 19th while Chicago January 13th also. Rice closed down the 50 cent limit giving me a second sell signal with its worst low and close since January 18th. Oats also settled down its 20 cent limit giving me a SELL SIGNAL with its lowest low and close since January 31st. Corn made a new CONTRACT HIGH before braking sharply ending up down its 30 cent limit making a KEY REVERAL causing me to stand aside. The bean complex also closed sharply lower giving me SELL SIGNALS for the beans( down its 70 cent limit to its lowest low and close since Dec. 16th), meal(Dec. 17th) and oil(down its 250 point limit with its worst low and close since Dec.), SELL SIGNALS FOR OATS, ROUGH RICE, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS!
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.