We’ had a 6 percent down move in the SPH; We had a 7.9% down move in the Dow Jones. We got a bit of a bounce; that bounce got the bulls feeling better about things.
I have upside targets of 1775 and then 1789 in SPH if we continue to rally. 15740 and 15890 if we get the bounce in the Dow.
The initial reaction to the number will be violent. Its really a coin flip.
My own personal bias is there is another leg down so we get the full 10% correction lower;
Because of that, although I have a profitable long position, I have protective sell stops below the market.
In the beans, we are at the top of a big wedge formation. We’ve rallied 70 cents in the last 5 days, and I have to admit I’ve been surprised. Just goes to show you what happens when you think too much of your opinion. If we trade above 13.40; all short positions will be in jeopardy.
Tomorrow is decision day. If SH takes out 13.40, we’re looking at another leg higher. If we fail, we’ll get a quick 35 to 40 cent down move. Plan accordingly.
