The Dollar/Euro relationship strengthened today, with the Euro hovering around the psychologically important 150 mark. In response to that move, we saw some of the froth taken off of the grains which spurted higher overnight…We saw early pops higher on short covering in the grains, followed by a viscous break lower, with SX alone breaking over 27 cents in about one 5 minute period, followed by a rebound through the afternoon, another sharp break a minute or so before the close, and then short covering during the close with about a 5 cent closing range in the last minute..
Similar volatility was seen in Corn and Wheat… For the day SX settled up 3 1/2 cents at 1009, WZ settled down 3 3/4 cents at 548, after trading as high as 573 in the morning, and CZ settled down 6 1/4 cents at 397 1/4 after trading to a high of 413.. November Beans had a high of 1028 on the screen and a low at 1001 for a nice 27 cent spin cycle for the unwary…
All in all, it still looks bullish on the short term charts for the grains, despite the strength in the dollar. Today we saw lower prices in Gold and Crude with Crude hovering around the 80 dollar level, and Gold trading between 1068 and allow at 1050…
The stock indexes are seeing continued pressure, even in the face of relatively good news from existing home sales info…
As we head in to the weekend, at this point in the day, I would expect to see continued choppy trade… Next week is the last week in the month, so we could see some evening up of positions, congestion around recent new highs in the grains, as the market digests the last 3 weeks of activity.
Have a good weekend, and keep those questions and comments coming.
Good Trading