A tight 100 pt trading range on an unemployment Friday? I’d call that a tepid response to what should have been bullish.
Perhaps traders are more worried about the fiscal cliff negotiations than any thing else.
We continue to have no settlement with both sides apparently happy to keep campaigning in the press instead of getting the job done. Maybe they should lock these guys in a room w/ no bathroom for a weekend. My guess is they’d come to an agreement after about 12 to 18 hours.
In any event, my opinion remains the same. I am scale in seller here between 13,000 and 13,200 with an exit parachute above 13,300. 13,144 has been the high so far and we are trading at 13,086 as I type these. 13,251 would be a great sell area.
As for the grains, we are having profit taking at the end of a week. Overnight we couldn’t get the 15.00 print in SF. 14.98 1/4 was the best we could do. However, we have rallied back 1.28 after a $2.00 break which started November 1st and the November 16th 5 month low at 13.72.I am not really interested in selling beans with the Chinese actively buying here. that being said, I’d like to buy a break down at 14.25.
As I type this at 10:14 we are having some sell pressure in the grains, On a Friday in December, I’d be more inclined to step aside today.
The hogs are over a buck lower since I posted yesterday to sell rallies there. If you were aggressive and sold at 84 40/84.50 level, you’ve got a dollar profit. Manage the winner accordingly. I like buying back shorts and getting a spec long if we break another 1.30 to 1.80.
That’s about it.
Have a good weekend.
CER