Yesterday’s close was not very impressive in the grains, given the fundamentals of the number. Other than the initial push up in corn to try to move up 40 cents, the beans looked suspect. Today we have corn down 10, wheat down 20 and beans down 20. That’s 500 a contract, and 1K a contract respectively, if you were short futures.
If SX futures fail at 15.00, we’ll see a flush down. I’d look to sell it here on a spec for the next week. You’d have to risk 25 cents though, or about $1,500 a futures contract.
Its still early Friday, currently 9:41 AM.
In Dec Dow futures, 13,227 holds as the low. We are currently slightly higher. I’d maintain shorts and place buy stops to insure worst case scenario being a push on any short futures. If you’ve been following along, you should be short from the 13,500 to 13,540 level.
That’s about it for now.
CER