What’s Up, What’s Down: Turnaround for Crude and Grain?

Comments for Thursday, July 8, 2010

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


Sharply higher closes Wednesday for crude and heating oil along with the RBOB while lower for natural gas. The crude, heat and RBOB still look lower overall but today’s action might be signaling the beginning of a turnaround back higher. For now I’m standing on the sidelines. Gas settled lower again acting like it will continue to test its support from 420 to 460 basis the August contract making it difficult to take a short position at this time. SELL SIGNAL FOR NATURAL GAS. CALL FOR DETAILS!

Crude Oil Chart

Natural Gas Chart


Higher to sharply closes Wednesday higher for Minneapolis, Kansas City and Chicago wheat along with oats, rough rice, corn, soybeans, soymeal and soyoil. This turned out to be one heck of a day if you’re long especially after the grains couldn’t hold their rallies on Tuesday. This type of action is indicative of a possible end to the bear markets in the grain complex.

Minneapolis, KC and Chicago wheat have now given me BUY SIGNALS all making their best highs and closes since last March. Corn made its highest close since May 27th now at the upper end of a strong resistance area and very close to a buy signal. Rice settled higher but continues to be in a down-trend overall while oats continue to look toppy even after another higher close and a DOUBLE BOTTOM in place at 243 1/2 basis the December contract.

The beans complex settled sharply higher with beans forming a large potential bottom at this time and meal making its best high and close since May 4th continuing its strong uptrend. Oil still is the weakest of the bean complex with strong resistance overhead at this time. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH OATS AND SOYMEAL. SELL SIGNALS FOR SOYOIL AND ROUGH RICE. CALL FOR DETAILS!

Wheat Chart

Corn Chart

Oats Chart

Soybeans Chart

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. 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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