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

Comments for Thursday, November 18, 2010

Looking Ahead to Today by Reflecting Back at Wednesday’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 made its lowest low since the middle of October before settling higher in reversal type action. I’m barely holding on to my buy signal since lumber is forming a potential top and is in a critical area (260/Jan. contract) to hold. BUY SIGNAL. CALL FOR DETAILS!

Lumber Chart


Cocoa closed sharply higher this time but still hasn’t been trending since the latter part of September. A key price area to hold is 2750 basis the March contract. Meanwhile, I’m continuing to standing aside.

Cocoa Chart


Sugar settled slightly higher consolidating over the last few trading sessions but looking toppy in a bull trending market. Since there is resistance over 2800 basis the March contract and I will continue to stand aside for now.

Sugar Chart


Cotton settled lower for the 6th trading session in a row including when it made a key reversal on the 10th of November. Now cotton is in a small support area still bullish but forming a possible top at this time. However. The long-term trend is still very bullish overall. BUY SIGNAL. CALL FOR DETAILS!

Cotton Chart


Coffee settled higher after making its worst low in over two weeks. Coffee continues to hold a support area so far and still in a strong uptrend overall but now is forming a possible top. The 200 basis the December contract is a critical area to hold even with good support underneath and around 194 basis the December contract. BUY SIGNAL. CALL FOR DETAILS.

Coffee Chart


OJ made its lowest low and close in over three weeks. Settled higher this time following through from Friday’s reversal type action. There is good support below below 15000 basis the January contract. OJ still looks like it’s in a large BULL TRIANGLE but I’m continuing to stand aside at this time.

Orange Juice Chart

Special Note for Cotton Traders: The daily price limit for Thursday, November 18, reverts to 5 cents.

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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