Surprise Surprise, more volatility and head fakes… After opening and posting early highs or weak short covering left over from last Friday’s sharply lower settlement in Dec Wheat, which saw strength in the beans as an offsetting hedge, the puppet masters have struck once again.. Buy stop worm? Isn’t it interesting how the open saw a ten cent bump in the wheat and beans? just enough to go up and find any rational Short’s stop order? IN any event, Nov beans flirted around the 934 level for a while and then rewarded patient shorts with wide buy stops with a nice 15 cent wash out down to 918…A 19 cent trading range on a Sunday evening in the first three hours.. It will be interesting to see the gyrations which will pop up these early morning as the day progresses in Asia.. It seems to me that some Asian fund players have added to their love of backgammon, Maj Jung and roulette with the love of slamming thinly traded electronic markets during the overnight session…
Currently the metals are mixed which gold slightly higher, silver slightly lower…Stock indexes as well are sleepy at this point, with the SPZ down 3 handles and the Dow down about 40points.. Crude is slightly lower at this point in the trade with Dec Crude sitting on its ass around 65 bucks a barrel…
For the rest of the evening, I would look for possible flushes in the Nov beans down to our old favorite level around 903 or 904.. From the looks of things, with SX currently trading around 920 it appears that one or two strategically placed 2 lots could send us there. Perhaps we’ll see a mythical 500 lot buy laying on the screen down around 906 which would act as a magnet, which once filled would allow the market to head fake down to 903 followed by a ten cent rally back to 913….One thing is for sure, as we head into the end of the month, with harvest pressure on the horizon, less and less time for a frost to matter, and with the potential for a huge new crop on a fundamental basis, barring fresh news of Chinese Buying… this market looks ripe for a correction which most likely will be fueled by fund long liquidation if we start hitting key chart points below, which could wipe out a buck of fluff in short order..