What’s Up, What’s Down: Spotlight on Softs
Comments for July 19, 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
SPOTLIGHT ON SOFTS FUTURES
SOFTS: 7/19/11
LUMBER: Lumber settled higher with a very narrow range ahead of the all important housing starts & permits report. still needing to close over 373 and even better 280 (Sept.) to really signal a major turnaround in my opinion. Lumber looks like its forming a potential major bottom at this time. BUY SIGNAL. CALL FOR DETAILS!
SUGAR: Sugar closed lower for the third session in a row after last Wednesday’s reversal type action. I hope you tightened up stops (below 2840-Oct.)and/or lightened up until a new high is made. Think about re-entering under 2600 if the technicals look okay for the October contract. Also, I wouldn’t want to see a close below 2800 at this time. BUY SIGNAL. CALL FOR DETAILS!
COTTON. Cotton settled lower again but at least not down to its expanded limit this time. However, this was still cotton’s lowest low and close since last December obviously looking extremely bearish as evidenced by the chart below. Also the weekly chart shows little support down to the 100(Dec.) area. SELL SIGNAL. CALL FOR DETAILS!
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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.