What’s Up, What’s Down: Spotlight on Softs
Comments for April 15, 2011
Looking ahead to Friday by reflecting back on Thursday’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.
SOFTS SECTOR RECOVERS, LED BY COCOA
In early morning trading, the Softs sector is showing moderate strength. My Futures HeatMap, a color-coded view of the eight futures market sectors, shows that Softs, as of 8:30 am Central this morning (April 15), are up a composite 1.09%, with Cocoa being the strongest of the five softs contracts that comprise the sector. Cocoa is up a notable 2.40% from Thursday’s close.To view the Heat Map, click, or type this link into your browser: https://wwwmarkethead.com.
COCOA: Cocoa settled higher for the fourth trading session in a row which was its best high and close since March 29th and actually gave me a BUY SIGNAL. However, there is good resistance over 3200 basis the July contract and major support down to the 2800(July) level. BUY SIGNAL. CALL FOR DETAILS!
SUGAR: Sugar had its lowest low and close since December 10th in the July contract while May since last November. Also, sugar is now on a good support area(2400). SELL SIGNAL. CALL FOR DETAILS!
COTTON: Cotton had its lowest low and close in almost two weeks but has been still trading in a sideways pattern since the beginning of March which doesn’t take away from how bullish it’s been long-term. Also, it’s pattern looks like a large drawnout BULL TRIANGLE to me. BUY SIGNAL. CALL FOR DETAILS!
COFFEE Coffee had its best high and close since March 10th looking like its headed towards its highs back to giving me a BUY SIGNAL. BUY 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.