Grains are over sold. Last Friday seemed like a throw in the towel bail out of the longs.
Buy some cheap march calls in corn wheat and beans. Beans should lead the way if we get a weather issue in South America.
In the Dow, we’ve had a 38% bounce. Last Friday’s low at 11,129 marked a 1,075 point, 8 day puke fest lower.
Half way back at 11,666 should be a good sale. Be a cautious buyer at 11,500 level looking to sell and flop at 11,666 or 11,800.
That’s all for now. I really like buying grains here on this break. Especially beans and corn.
Wheat will be the weak sister. But I think we’ve carved out a bottom.
As always, use stops to protect against an adverse move.
CER