Please go back to April 14th. I suggested selling cotton. Cotton made 3 month lows today. Cover 1/3 and move protective buy stops on the other 2/3rd. We’ve had a 40 cent break. It could go a lot further. Time will Tell.
Dow cash stubbornly held on to its rally here today. We are within 200 points of the upside target 12,920.
Corn wheat and beans moved lower. The spring weather market seems to have begun to turn. As wheels turn in the Western Corn belt, pressure will be taken off of these high prices.
Today the rumor was a very large trader blew out of corn longs to cover a long US Dollar bet.
Gold made a new high at 1538. Silver is approaching its record all time high of 50.50 posted in January of 1980. I was a freshman in high school then.
Today’s high in silver was 49.56. That’s less than .95 cents away from that high. We will see that old high soon.
As always, I want sell into that new high, using the proper risk/reward parameters.
Rumors of the CME getting limits in Corn raised to 50 cents instead of 30 have spooked some longs.
Margin’s will automatically be raised. Higher margins means smaller positions.
Higher daily limits opens the door for much larger percentage moves over a 24 hour period.
This could be the move which takes the froth of of these markets, which have been steaming higher for the last 9 months.
Good Trading
CER