Wheat Vulnerable

March 1, 2001
Dave Landry

Each evening we
focus on the most interesting aspects for the upcoming
trading day. The comments are based on observations of the
nightly updates of the Futures and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
markets opening. Therefore, overnight events may alter the
outcome of these observations.

May wheat
(
WK1 |
Quote |
Chart |
News |
PowerRating) hit recent highs (a) but reversed to close poorly (b). This suggests that its
longer-term downtrend remains intact. Look for a shorting opportunity
here.

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Thursday’s reversal, after stabbing
lower in the March index futures, suggests that there may be a bounce play here
for the nimble (e.g. day trade). Make sure you wait for follow through as they
are trading lower at publication of this comment.

Follow Up

The March Canadian Dollar
(
CDH1 |
Quote |
Chart |
News |
PowerRating),
mentioned recently, was down sharply again on Thursday. If you have profits
here, you might want to lock in a piece.