Dow Support we can look to? 10909, 10713, 10579, 10401 could all come into play today.
S&P, 1133, 1112, 1103, 1076 would be levels we would look for support. We seem to be knee jerking from Europe and Asia panicking because they had no where else to sell because of our Labor Day holiday.
I would want to be short this week. I think Thursday, no matter what the President says or the Republicans say, we’ll spike lower the moment he says “Good Evening”.
The exaggerated sell off which will come at that point, probably, will be a good spike down to buy. You have to be heading the opposite way of the herd when it spooks. Other wise, you’ll end up some one’s or some thing’s dinner. That is one thing which holds true.
How bad could the sell off be? I’d have to go back to our July 2010 lows in the S&P at 1003. The low in the Dow was 9500. We could revisit those levels. And the finger pointing will begin.
As for the grains, there is a lot of risk to the down side. However, bull markets find demand rationing eventually. With the outside markets coming under pressure I keep asking my self, one question.. Why are we still at these high levels? There is a disconnect. And I am not sure why, in the last 20 months, we have not had a meaningful, painful correction for the bulls. Sooner or later, that will end, and I think, personally its getting late in the day for Christmas Corn. Buy cheap puts now.
That is all
CER