The high in Cash Dow in 08 was 14,164. Today’s high? 13,610. Can we take out the next 554 points? I would argue yes.
Don’t fight this trend. Be long, but have sell stops below.
Earnings have been better than expected. I’d argue that for the next several years that will be the trend. Analysts learned to under estimate performance. Better a bull surprise than a bear surprise if you are an analyst for a brokerage firm which caters to the public. The public likes bullish news. Hence, the bias.
But that’s my opinion.
As for the march Dow futures, we are making new contract highs. I’d surmise that the round numbers, 13,700, 13,800 and then 14,000. I don’t really see how we don’t get a 14,000 print. Its only 400 points. And we keep getting bullish news.
CER
I remain long feeder cattle with the march 150 calls. 70 days to go. I think its over sold.
CH needs to take out 7.35 to get another leg up.
WH needs to settle above 8.00 or we could have a correction lower, especially with the funds buying beans and selling wheat and corn against it.
We’ve had a 1.20 rally in beans. We need SH to test 15.00. We’re 40 cents away.
That’s about all for today.
CER