What’s Up, What’s Down: Wheat’s Mixed Signals

Comments for Wednesday, September 1, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’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.


Lower closes Tuesday for rough rice, Minneapolis, Kansas City and Chicago wheat along with oats, soybeans, soymeal and soyoil. All of the wheat are still in uptrends with Minneapolis needing to continue to hold 692, KC 691 and Chicago 677 1/2 in the December contracts.

All of the wheat were unable to hold early rallies selling off sharply near the end of the trading session dragging down the rest of the grains with it. Since there is little support underneath all of the wheat, it becomes even more important for the above mentioned prices to hold. Also, all of the wheat are in triangles but I’m not certain if they’re bull or bear triangles. I really hate admitting this but they are triangle none-the-less. Rough rice settled lower while consolidating over the last week along with being in a minor resistance area. Corn settled lower but was just pulled down by the other grains. Still, there is strong resistance up to 450 basis the December contract and corn HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!. Even so, corn has been in an uptrend since the beginning of July and that can’t be ignored. The bean complex settled lower again with the beans and oil looking toppy at this time but the meal still looking the strongest. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYMEAL, CORN, OATS AND ROUGH RICE. SELL SIGNAL FOR SOYBEANS AND SOYOIL. CALL FOR DETAILS!

Soybeans Chart

Corn Chart

Wheat Chart

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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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