All markets took off over night courtesy of the ECB banks. They added liquidity by printing money around the world. I WOULD NOT WANT TO BE SHORT. REPEAT…I WOULD NOT WANT TO BE SHORT. The game has changed. Its a risk on trade.
Furthermore, the funds are net short beans and net short wheat… The commercial funds bought it because they needed it. The index funds bought it and they don’t typically trade. They buy and hold. My point is, there is no one left to sell it to the shorts. If you are short, you are going to feel pain. My advise is to rip it off like a band aid today.
FYI, The Dow index futures has rallied 738 points in 3 trading days. 11,791 was the 62% retracement of the recent 1,000 point break. That break started on November 14th with the high tick at 12,203. That break ended last Friday, just 3 trading days ago, at 11,128. I think we’ll see a run back up to 12,200 by Mid December.