The US dollar traded under 76 cents, making new lows, and the Gold made a new all time high at 1062.70, Silver got up to 17.80…. The world wants commodities… The world wants something tangible…
As we wait for tomorrows USDA Crop report ensures we will have more fireworks in the grain markets…Today we saw what looks to be a double top in the corn at 370… If per chance we gap open higher above that level tomorrow, I think that 400 is a slam dunk..December wheat settled at 474, up 10 3/4 cents, with it also poised to go for 500 on any super bullish numbers tomorrow…
Finally the Beans, at 942 for a high, settling at 936 look poised to go for ten bucks if we can punch through 985…
All in all it just looks like a continuation of the currency overlap…The world doesn’t want dollars.. It wants hard assets , silver, gold, grain, things you can hold on to and store…A real physical commodity…
Between dueling weather forecasts, anticipating heavy rains, as well as a hard freeze in the Midwest this Sunday/ Monday, it looks to be shaping up for a potential
‘perfect storm’ of inputs…. Toss in some fireworks from earnings week in the Stock market, and you have a potential catalyst for some real volatility.. I would not be surprised to see some limit moves in these grains over Friday and Monday…
My over-all feel is that we are heading higher, but will enjoy some hard breaks to punish weak longs… Very often the market will buck hard in an attempt to throw off the weak positions, only to resume its trend, (in this case up)… Hard breaks could be opportunities for strategic limit orders to buy, with sell stops in place to protect against any tsunami type break…
Good Trading
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