What’s Up, What’s Down: Spotlight on Softs
Comments for March 4, 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
THE SOFTS SECTOR IS UP A COMPOSITE 0.80% THIS MORNING (FRIDAY, MARCH 4; AS OF 8:00 AM CENTRAL), LED BY SUGAR (UP 3.14% FROM THURSDAY’S CLOSE)
COCOA: Cocoa followed through with another strong session and a new CONTRACT HIGH CLOSE once again with its closest support area under 3400(May). BUY SIGNAL. CALL FOR DETAILS!
SUGAR: Sugar settled slightly higher this time but it was its best close in almost a month! However, sugar is also in a resistance area and is at the same price level as back in last December. I’m standing aside for now until I, at least, see a breakout in either direction. Long-term the trend for sugar remains up.
COTTON. Cotton settled higher again making a new CONTRACT HIGH CLOSE, ending its key reversal. BUY SIGNAL. CALL FOR DETAILS!
COFFEE: Coffee made a new CONTRACT HIGH CLOSE while still in a BULL TRIANGLE acting very strong with little support down to the 250 area basis the May contract.. BUY SIGNAL.CALL FOR DETAILS
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.