What’s Up, What’s Down: Spotlight on Softs
Comments for August 9, 2011
Looking ahead to Tuesday by reflecting back on Monday’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
FOCUS ON SOFTS SECTOR
FUTURES AND OPTIONS TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. FUTURES AND OPTIONS TRADING IS NOT SUITABLE FOR ALL INVESTORS.
LUMBER: Lumber made another new CONTRACT LOW along with a new CONTRACT LOW CLOSE this time. At least it did settle near session’s highs for a small consolation! Looking at the chart below pretty much says it all concerning how lumber looks! SELL SIGNAL. SELL SIGNAL. CALL FOR DETAILS!
COCOA: Cocoa settled lower still in a strong support(2900-3100) area. I’m still on the sidelines with cocoa being in a range roughly between 2900 and 3200 since the beginning of May. I recommend buying under 3000 or selling above 3100 until it doesn’t work anymore ignoring any other signals for the time being. However, I do have a sell signal but won’t act on at this time.
SUGAR: Sugar made its worst low and close since early July. Its next support area is around 2600(Oct.). SELL SIGNAL. CALL FOR DETAILS!
COTTON: Cotton had its worst close in two weeks starting to turn back down again looking very bearish overall. SELL SIGNAL. CALL FOR DETAILS!
“A good plan is like a roadmap; it shows the final destination and usually the best way to get there” (H. Stanley Judd). Traders need a trading plan too. Download my TRADING PLAN TEMPLATE by clicking this link or copying and pasting it into your browser:
https://www.zaner.com/3.0/ljstradingplantemplate.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.