TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETH

OPTIONS PLAY: Brutal Beans

This article will focus on SOYBEAN FUTURES and whether or not the market will make new lows.

MY ANALYSIS

Fundamentally, the SOYBEAN FUTURES took quite a hit this week in my view, as a stronger U.S. DOLLAR INDEX put pressure on many commodities. Also favorable weather, problems in the Euro Zone, a slow recovery, and the possibiltiy of a double dip could continue to pressure SOYBEANS.

Technically, I see SOYBEAN FUTURES in a SUPER-TREND lower as the market trades below the 9 day MOVING AVERAGE and the 9 day MOVING AVERAGE is below the 20 day MOVING AVERAGE as these indicators point lower on steep angles. See daily chart below. For more charts, studies, and commentary go to: http://markethead.com/2.0/free_trial.asp?rid=McKinney



Technically, in my opinion this weekly chart on SOYBEAN FUTURES could be in the process of forming a DOUBLE TOP pattern. It could be confirmed if the market takes out the previous low of $12.70 per bushel which was the week March 14th. Also, the markets inability to make new highs in my view signifies that it is potentially running out of steam. Finally, all of my indicators on this weekly chart are pointing lower, the top and bottom BOLLINGER BANDS and the 9 and 20 week MOVING AVERAGES.

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