The old high in DZ futures was 15 522. Today’s high so far 15,511. In retrospect, it would have been nice to have bought it and sat with it. The last trade we risked 100 pts on a sale last week on a sale, simply b/c I felt that it was over done to the upside. Luckily we had stops and took losses.
This morning’s rally was largely credited to Larry Summers officially being out of the race for the next Fed Chairman. How can any
I am not a big believer in flipping in and out of long/ short long / short positions. If you are looking to do that, you are competing against the HFT traders of the world. They are spending 1MM a quarter on computing power/ upgrading/ programming. Its all about speed there. I don’t believe an individual investor can compete in that market. There are certainly guys who do it and do it well. Any search engine will give you a lot of info on getting into a CTA who uses those methods.
That being said, I’d be looking to buy a little dip 15,422 or 15,400 is a good buy. Put a sell stop in and look for DJZ to take out that 15522 high.
Beans are a big disappointment for the bulls with the rain. Talk about a rejection of fundamental and technically bullish combination. When a market gets strong bullish moves and gets no follow through, that’s a sign of underlying weakness. Again, the high was 1400. We never even took a run at the 1409 level. I had some orders waiting there to sell it. We’ll see what happens tomorrow at 5AM with the FSA report. They might throw a curve ball in with planted acres vs. acres that went into prevent planting.
This might be a week of consolidation in the grains after 3 weeks of impressive volatility.
Farmers are hitting the fields hard in the next 2 to 4 weeks.
Corn still needs to test 4.45. We may have to get through the FSA report to see if there’s any bullish fervor left. I still have 14.25 as a downside target. That being said, for a lot of clients, who have been short corn from 5.70 and 5.60. I’m heading to the sidelines, at 4.50 and taking the $$.
CER