The Dow looks to be mired in a 1300 point trading range between 11,700 and 10,400. Two trading days ago when we traded below the 10,400 level, a lot of traders got caught selling into new lows. When the waterfall of selling did not follow through, we had a 300 point rally in about 20 minutes. Talk about selling it in the hole.
We’ve now Bounced 640 points from that panic low. Bounce is the word.
There’s a trendline resistance at 11,120. If we rally there, please have a resting order to sell it. Have a buy stop above it so you know your maximum loss, should the market blow through it and head north.
I like buying bean calls after a $3.00 break. SX 1150 seems to be a place on the charts where maybe the bulls make a stand. If that folds, then we’ll see more liquidation from longs.
Christmas Corn (December) is trying to carve out a bottom. Buy calls or get long futures, looking for the low at 5.75 to hold fast. If it does not, be ready to bail.
That is all I like for Today.
CER