Tuesday, July 10, 2012

Sell Wheat Ahead of WASDE

Commitment of Traders Send Clear Sell Signal Ahead of WASDE

A futures trade for the truly adventurous.

July 10, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

Wheat futures have benefitted greatly from the rallies in corn and soybeans. However, the wheat crop has not been subjected to the same weather conditions as the other two due to its non-coincidental growth cycle. Therefore, much of this has taken place as a symptathy rally.
This sympathy has been primarily fueled by small speculators buying grains. We can see that Commercial traders have sold off 62.5% of their position since the May highs, which coincides with the beginning of the seasonal weakness.
Gutsy traders may want to sell September wheat in front of tomorrow’s World Agriculture Supply & Demand Report. The sell signal based on our commercial trader modeling is quite clear. However, given the magnitude of the report I HIGHLY suggest placing a protective buy stop above yesterday’s high at $8.44 ¾.


Commitment of Traders Daily Signals

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

No comments:

Post a Comment