Yesterday, they assured the world the sea water and borium was doing the job. If there is another Chernobyl, short term its bearish.
Longer term, it has to be bullish for commodities. Japan imports huge amounts of corn. Unless things degenerate sharply, this break will be looked at in 6 months as a screaming buy. In the mean time, I am not sure where the floor is.
I already wrote I like buying CK 650 and I like buying 13.00 SK. Just look to use sell stops.
For existing positions, lets continue to manage our short positions in the Dow from,,, wait for it… 12,400 and the double top. I sold more when Dow dropped below 12,000 and the S&P Cash broke through 13.00. First target Down side for Dow Cash is 11,666. Second downside target 11,484. Cover shorts at those levels. Make sure, above all, that you roll down your buy stops on these short positions.
Do not let profitable trades get away by not managing the position. The stock indexes will not drop to zero. Sorry. At some point, we will find value. At that time, we should still be short. We’ll know the sell off is over when our last buy stop is triggered. Pretty simple really.
As for the short crude, 95.40 is good, and so is 92.66. 92.66 is a screaming opportunity. Again, I have some shorts from 103, some from 102.50, some from 102, some from 101, some from 100.50. Those all look good. I just do not want to let those get away. At this point, the position is a guaranteed winner. Just manage it as best we can. I would take off 1/3 of the position. Put stops on the other 2/3.
That is all for now.
I hope if you have relatives in Japan, they are safe.
CER