What’s Up, What’s Down: The Bean Complex in an Uptrend
Comments for Tuesday, December 8, 2009
Looking Ahead to Today by Reflecting Back at Monday’s Price Action
GRAINS:
Higher closes yesterday for soybeans, soy meal and soy oil but lower for rough rice, oats, corn, Minneapolis, Kansas city and Chicago wheat. All of the wheat joined from previous sessions the corn and oats with SELL SIGNALS. With the dollar holding, energies working lower and demand weak corn has been falling although somewhat grudgingly. Rice settled lower but in the upper half of today’s trading range still looking very strong overall. Oats equaled its low on October 27th this time but made its lowest close since October 9th. As you can see oats have been selling off since early November. The bean complex, on the other hand, is still in an uptrend with beans, meal and oil closing higher. We have been finally seeing what I expected for sometime meaning the bean complex should be the strongest fundamentally and spreaders should be buying beans and selling corn or wheat against them.
FINANCIALS:
Higher settlements for the Eurodollars, notes and bonds. All of the indices still in up-trends long term were hurt by Friday’s action. Still the bonds and notes could be bought since in support areas even though they are both forming potential tops along with the Eurodollars. Like I’ve said before never assume anything until it’s verified by your type of trading.
ENERGIES:
Sharply higher for natural gas but lower for crude and heating oil along with the rbob. The crude, heat and rbob have been unable to penetrate crucial areas to turn these markets higher as their trend continues lower since October with crude making its lowest close in over 2 months . Gas closed sharply higher but is still in a very strong down-trend overall. while now forming a potential bottom.
See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
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. If you would like a free booklet explaining the charts mentioned above, 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.