Here we sit. Do we settle Dow Futures above 13,300? so far high is 13,305, that’s the high tick. If you are long, take profits. If you are like me and have been scaling out of longs and getting short since 12,150…You sit tight. Let you buy stops work. Fold your arms. Turn off the screen and check back Thursday or Friday.
March Wheat, to switch gears: We had a 2.35 rally this summer fueled by the corn drought. In the past 3 days, we’ve dropped over 50 cents. We came down to 8.09 last night which is the 200 day moving average. Its also the exact 50% retracement of that rally.
We’ve already rallied 15 cents off that level. What to do? We’ve had a 86 break in 10 trading days.
I think that’s over done. Buy an 8.30 9.30 call spread for 22 cents. Risk 22 cents to try to make a dollar. Honestly, If the option spread becomes worth 50 cents, we’ll be taking profits.
You have 72 days for this to pay off.
That is All.
CER