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
ANDREW WALDOCK
866-990-0777
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.
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