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Jim Wyckoff's Top Market Ideas--Nov. 19, 2010 |
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Note: I occasionally get questions on the "shelf
life" of my Top Market Ideas reports, or for how long are these trading
ideas still good. My general answer is that these trading ideas have a shelf
life of at least two or three weeks.--Jim Consider buying a put option in March sugar futures. Recent extremely volatile price action at higher price levels in March sugar futures is a bearish development. Prices have backed way off the recent high and on Friday prices scored a big and bearish "outside day" down on the daily bar chart. Serious chart damage has occurred recently and bears have downside near-term technical momentum. My bias is that sugar has put in a major market top and that prices will trend lower, but in a choppy fashion. With the market being so volatile, buying a put option is a safer trading opportunity. The strike price for the put option is up to the individual trader. The downside price objective is 20.00 cents or below. |
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| March Chicago wheat futures a selling opportunity on more price weakness. March soft red winter wheat futures at the Chicago Board of Trade this week saw serious near-term chart damage inflicted as prices saw a bearish downside "breakout" from a three-month-old sideways trading range and prices hit a fresh 3.5-month low. The bears have gained the near-term technical advantage. A close below support at $6.73 1/4 would become a fresh selling opportunity. The downside price objective would be $5.80, or below. Overhead technical resistance, for which to place a protective buy stop just above, is located at $7.15. |
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| March Canadian dollar futures a selling opportunity on more price weakness. The March Canadian dollar futures have recently formed a bearish double-top reversal pattern on the daily bar chart. Also, a bearish pennant or bear flag pattern has formed this week. The bears have gained near-term downside technical momentum recently and would gain more power by pushing and closing prices below solid technical support at this week's low of .9714. That would also become a fresh selling opportunity. The downside price objective would be .9400, or below. Overhead technical resistance, for which to place a protective buy stop just above, is located at .9817. |
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Disclaimer: There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing in this newsletter is intended to be a trading recommendation for you to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information in this newsletter.