Comments for Thursday, March 18, 2010
Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action
Higher closes yesterday for rough rice, soybeans, soymeal, soyoil, corn, oats, Minneapolis, Kansas City and Chicago wheat again due to the lower dollar which did rally after the grains were closed leading me to believe the grains will start out lower Wednesday evening. All of the wheat continue to be in downtrends overall with good resistance right overhead.
Corn settled higher again but is still working lower overall with 359, basis the May contract, a key price to hold. Corn is now in a resistance area also and still has a gap at 403 in the May contract and, as I’ve mentioned many times before, throughout history, grains fill over 90% of their gaps sooner or later.
Rice closed slightly higher again off of its reversal type action on Monday but still looks to be in a very strong downtrend overall.
Oats settled higher and broke out of a bear pennant in the wrong direction meaning the May contract could retrace back to the 230 area. The bean complex settled higher with the beans, meal and oil now in resistance areas. Also, the oil is forming a possible top. BUY SIGNAL FOR SOYOIL. SELL SIGNALS FOR MINNEAPOLIS AND KANSAS CITY WHEAT ALONG WITH ROUGH RICE, OATS, SOYBEANS AND SOYMEAL. CALL FOR DETAILS!
Higher closes for live and feeder cattle but lower for lean hogs and pork bellies. The cattle made new contract highs and closes while some feeder cattle contracts made new contract high closes and breaking out of a bull pennant. The beef complex is in one of the strongest uptrends in futures at this time. Hogs and bellies closed lower with the former still in an uptrend but have been losing some steam while the latter is in a DOWN CHANNEL still in a support area. BUY SIGNALS FOR LIVE AND FEEDER CATTLE ALONG WITH LEAN HOGS. CALL FOR DETAILS!
Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
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. If you would like a free booklet explaining the charts mentioned above, email Rick at firstname.lastname@example.org.
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.