Food for thought for fundamental traders out there. Logic suggests that QE3 should have been friendly for commodities in general. However, Corn and Beans have done nothing but drift lower. Corn spiked higher but is now down 60 cents a bushel, or 3K dollars a contract.
Soybeans spiked on the 13th as well. As of today’s action it has dropped $2.20 or $10,100 dollars a contract.
Wheat has held up but is stuck more in a trading range. If we have continued pressure, it will soon follow suit.
Just food for thought. After being beat up on every rally, the bears are finally starting to get healthy.
Just an interesting observation.
If you go back, I did suggest getting long gold. That has worked out pretty well so far. Gold has its own story. Printing Dollars makes people nervous. China is our principal buyer of our debt. Watching them buy more gold than US debt was a no brainer. I still like being long Gold, looking for an $1800.00 print. However, as always, protect long profits with a trailing sell stop.
I have been doing this long enough to know that good ideas are only good if you make and keep $.
The rest is all words.
CER
