What’s Up, What’s Down: Spotlight on Softs
Comments for October 20, 2011
Looking ahead to Thursday by reflecting back on Wednesday’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
BEAR TRIANGE FORMING IN LUMBER? MIXED SIGNALS IN COFFEE??
SOFTS: 10/20/11
LUMBER: Lumber settled down 600 points basis the November contract after the housing starts & permits report still looking very bearish overall with some resistance around the 230(NOV) area. At first I thought a bottom could be forming but now it looks like a BEAR TRIANGLE. SELL SIGNAL. CALL FOR DETAILS!
SUGAR: Sugar had a huge range ending up lower now below its nearest resistance area while needing to settle over 2800, in my opinion, to have a chance of working higher overall. Like I’ve been recently saying, in my opinion this is the area to put on shorts if you’re bearish. SELL SIGNAL. CALL FOR DETAILS.
COFFEE: Coffee closed higher but still very bearish overall but giving me a buy signal last week, albeit, a weak one.I would be more comfortable with a trade over 24655 and a close over 250(Dec.) which would help confirm a turn back higher in my opinion. 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.