Comments for Tuesday, January 12, 2010
Looking Ahead to Today by Reflecting Back at Monday’s Price Action
GRAINS:
Crop Production, Grain Stocks, USDA Supply/Demand and Winter Wheat Seedlings reports were all released this morning. These reports could have a huge bearing on what the gains will do for a while. Higher closes yesterday for Minneapolis, Kansas City and Chicago wheat, while lower for corn, oats, rough rice, soybeans, soymeal and soyoil. All of the wheat still looks higher with resistance at the 575 level while making new recent highs and closes. Corn settled slightly lower ahead of the reports mentioned above still managing to stay within the 375-425 trading range (Dec) since October albeit at the higher end no matter what the fundamental news (poor demand and abundant supplies) has been. Rice settled lower again still in a BEAR TRIANGLE with 14500 (Mar) the key price level to hold and resistance around 15500. Oats had a huge range ending up seven cents lower in the March contract causing a failed bull pennant meaning they should continue lower overall in the short term. The bean complex also closed lower with beans and meal near sell signals and the former also at the beginning of a support area. Oil is in a neutral area but still forming a potential top.
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.
FOR YAHOO
For more trading strategies, go to TradingMarkets.com/reports.
[AMEX:SPY]