What’s Up, What’s Down: Spotlight on the Softs Complex

Comments for Wednesday, October 13, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action

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(November) settled higher for the fifth consecutive trading session once again continuing to hold the 220 to 200 support area and now giving me a BUY SIGNAL by settling over 240. There is little resistance up to the 260 area. BUY SIGNAL. CALL FOR DETAILS!

Lumber Chart


Cocoa settled slightly lower in a possible bottoming formation. Settling over 2800 basis the December contract was a good sign. But a close over 2900 could be significant. I have no trade signal at this time although the cocoa is now at the upper end of its trading range since August and very close to a buy.

Cocoa Chart


Sugar had a large range up ended up making another new CONTRACT HIGH AND CLOSE. There is little support down to the 1900 area basis the March contract. BUY SIGNAL. BUY SIGNAL. CALL FOR DETAILS!

Sugar Chart


Cotton made another new CONTRACT HIGH but settling lower this time in reversal type action. However, just like most commodities cotton has been in a strong bull market with some of the help coming from a weak dollar. There is very little support down to the 100 area basis the December contract. BUY SIGNAL. CALL FOR DETAILS!

Cotton Chart


Coffee had a strong close but still in a good resistance area. There is strong support from 17000 basis the December contract down to 16000 but with a large potential top forming. However, this possible topping formation seems to be weakening with coffee’s rally over the last week. Of course, the long term trend remains higher at this time. SELL SIGNAL. CALL FOR DETAILS!

Coffee Chart


OJ closed higher this time as chopping action continues but OJ does look like it’s in a BEAR FLAG at this time which is also part of a large BULL TRIANGLE. I’m only reporting what I see! It would be best to stand aside but my buy signal is still in place. BUY SIGNAL. CALL FOR DETAILS!

Orange Juice Chart

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.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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