What’s Up, What’s Down: Spotlight on Softs
Comments for August 29, 2011
Looking ahead to Monday by reflecting back on Friday’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
SPOTLIGHT ON THE SOFTS MARKETS
FUTURES AND OPTIONS TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. FUTURES AND OPTIONS TRADING IS NOT SUITABLE FOR ALL INVESTORS.
SOFTS: 8/29/11
LUMBER: Lumber had its best close since August 2nd(Nov.) just missing giving me a buy signal. but acting like it will continue to work higher in at least the short term. The November contract is in some light resistance and needs to first close over 240 in my opinion before you can talk about possibly setting up for a retracement rally. SELL SIGNAL. CALL FOR DETAILS!
COCOA: Cocoa closed higher this time but, if you are a short term trader, cocoa can be bought around 30 while not forgetting there is good resistance around 3200.Meanwhile , I’m standing aside until cocoa breaks out of its 2900 to 3200 range basis the December contract.
SUGAR: Sugar closed higher still in a long-term uptrend but acting a little toppy and there still is a key reversal in place from last Wednesday needing to make a new high and eliminate this reversal formation relatively soon in my opinion or else we could see a substantial correction with decent support starting around the 2800 area and below.
Labor Day holiday trading hours schedule now posted soon at HOT TOPICS page of my website .
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.