I’d sit tight the Dow position.
At this point its a push, with a free upside potential if it rallies.
Tomorrow the USDA releases crop production figures.
Interestingly, CZ settled 6 3/4 cents higher than the last trade. I don’t think its the pit who settles the prices. However, this is ridiculous. It triggers the technical traders buy signals.
It settled the CN-CZ five cents out from where it was actually trading. 6-3/4 cents is an extra 350 bucks profit per contract. If you have 2,000 contracts on, you just picked up a cool $700K “profit” just based on the settlement.
I predict, eventually, if the world’s attention focuses on corn and corn futures, this will come back to haunt someone.
We’ve been on a one year rally in the grains. This bull will end the same way all bull markets end. A nasty correction which “no one saw coming”.
Just remember, a Bull needs to be fed. If we can’t feed it, there is an easy 2.50 in downside risk. And every one I talk to is bullish. It gives me pause.
Tomorrow will tell.
CER