Today’s high 13,194. I have been talking about 13,200 as a sell level for the last 200 pts. I have been a scale in seller here. 13,300 might be tested. I would not cover shorts until we settle convincingly above that level. 13,251 was our November 7th which was met with a 817 pt sell off to the November 16th 5- month low, in the post-election puke fest. 13,600 is the level all the bulls are eyeing.
With the fiscal cliff out there I don’t know how you don’t sell this rally. In my own opinion, I think the fiscal cliff, Thelma and Louise scenario is a done deal. Politicians are all about scorched earth, no compromise, “we’ll nail you in the next election”… My guess is we go off the cliff, Obama blames all Republicans going back to Lincoln. And the Republicans continue to do what they have done, get painted into the corner of being the party of Richie Rich with no heart for fellow human beings, or concern for the future of the country.
On a secondary note, tomorrow we have a USDA report. We’ve recently had a pull back in grains from resistance at the top of each contract’s respective trading ranges.. SF dropped 2 bucks, rallied back 1.30 ( almost a perfect 62% Retracement of the $2.00 puke) ON A SPECULATIVE BASIS, I’D BUY GRAINS IN FRONT OF THIS NUMBER. I’d also have sell stops for futures. Or I’d just buy cheap calls. There you go Boris. Time stamp it.
Tomorrow, we should get an opportunity to scalp small long positions for winners in the wake of the number.
CER