Comments for Monday, November 1, 2010
Looking Ahead to Today by Reflecting Back at Friday’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.
Higher natural gas close while lower for crude and heating oil along with the rbob. I’m still standing aside for now in the three energies mentioned above until I see a breakout in either direction since trading these energies have been in choppy action since the beginning of October. The formations shown below don’t tell me much at this time but the rbob and heat look the weakest while crude might be in a bull triangle. Either way it’s not worth taking a position at this time in my opinion. Natural gas made another strong close ending up over 400 with good resistance over 434 basis the December contract. A close over 450 could change gas technically even there are huge inventories showing little signs of cleaning up due to better procedures for taking the gas out of the ground. Now, farmers in some states are renting out their property for gas storage! SELL 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 email@example.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.