I sold CZ on the close Friday. CZ at 5.57. Today’s low was 5.40. I covered 1/3 this morning at 47. I covered the other 1/3 on the close here at 5.44. I am holding the other 1/3 tonight. Planting progress came in within expectations. The 6-10 day forecast looks friendly with non-threatening weather.
I continue to hear from farmers in Southern Il and western Iowa who are too wet, and therefore very bullish.
I continually remind them that we plant corn nation wide. Don’t get caught up in marketing based on the view from your kitchen window.
The gold trade: I’d still want to be short below 1400 in June. However, markets are volatile enough that I want to have buy stops protecting any profits recently created by last Thursday and Friday’s lower move. Never let a winner turn into a loser.
As for the beans, planting progress at 71 percent. What ever acres lost to corn will be going to beans. I fail to see what is bullish about the beans. I believe all rallies should be taken advantage of either by selling some grain, or buy scaling in selling to build up a position you will hold through October.
That’s it.I will say that this isn’t the first time I was stopped out of a position which was correct, which I then re-established and then did well on. The markets squeeze every one out, no matter how deep their pockets.
Stock indexes continue to perform well. I think bears will repeatedly take losses trying to pick a top to sell. Don’t stand in front of this freight train, even if it makes no sense fundamentally. Simply look to buy dips, and move your sell stops up. One day, this thing will turn and it could get scary. But for now there is too much skepticism for the top to be in yet. We need CNBC to come out w/ a forecast of Dow 30K… That will be the indicator that the highs are near. As of yet, I haven’t seen that type of silliness in the media. At least not yet.
CER