September
6, 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
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| Commercial Trader Selling in Bean Oil Futures |
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Commercial
traders have been aggressively selling soybean meal since the July high of
55.19. This is a clear adjustment in their expectations of the soybean crush as
soybean by products become less desirable as feed to their increasing cost.
Yesterday’s inside bar coupled with a Commitment of Traders sell signal
provided a low risk entry for a counter trend trade. We sold soybean meal
futures on the overnight penetration of yesterday’s low at 55.25. Normally, we
would place our protective buy stop at the swing high. However, the inside bar
setup allows us to place our stop tighter, at yesterday’s high of 58.24. We are
looking for a 1/3 retracement from the June lows through this week’s high. This
gives us a target of 55.17.
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.
