October 2007. Til March of 2013. That’s how long it took a sit and wait to get even. And you only had to ride it down to 6500. 14,270 has been the high so far.
I’d be wary to step in front of this freight train. With interest rates at zero, commodities suddenly “risky” or “politically incorrect” ( how can you profit if people have to pay more for corn, wheat, beans, or worst of all…. oil and gas). That seems to be the pejorative play on commodities today.
We’ve seen wholesale movement of money flow ($FLOW) out of the meat complex. Barclay’s Bank was the best publicized. But there have been at least two other major commodity funds blowing out and closing the doors. Trading is a zero sum game and if you fail to deliver on promises, the doors shut quicker than you can say “sequester”.
That being said, We have opportunity on the horizon. Every day we get a new chance to put on a new winner.
Take a shot with some may corn calls. 720 call for $1,000. Buy July calls 750 for 15. In the beans, buy a SK 15.00 call for 30 cents or $1,500.00
This puts you long on paper w/ unlimited profit potential for known, very limited risk only in the premium you pay for the option.
That’s about it.
IF i owned stocks, I’d be loading up on puts as a protective level.
CER