Blog Archive

Typically after a large move down, like we had on Friday in the Grain complex, the following session or perhaps 2 sessions witness a short term correction in the overall trend. So, Today, we saw exactly that in the Grain Complex, Beginning with the Nov Beans, we went down, “explored the space’ around 880, rallied back about 20 cents got within 3 cents of the 900 level, then reversed and moved down to about the middle of the range, unchanged at 885.

Now we have a situation where 900 beans will be resistance on the upside. Until we settle well above that level, I […]

This morning has seen a bit of firming in the November Bean Contract. The 880 level, although breached with a low of 878, held and we bounced back to the 890-893 level. I personally think we will spend a little time here in the 880’s digesting the trade. It is a short week though, with Columbus day here in US, so that should compress and moves. I think the targets below are the options strike prices, 875, 850 and then 800.

Similarly for Corn and Wheat, these higher bounces are most likely selling opportunities to take advantage of. The key is to not be […]

Good Morning,
I am writing this installment on Saturday Morning October third… Yesterday saw a clean sell off in the grain markets. Corn, Beans, Wheat futures all settled on their lows of the session, and in most cases new multi-week low settlements.
A couple things continue to weigh on these markets.

First off, is the size of the crop now being harvested. Informa came out with estimates of a 13.1 Billion Bushel Crop in the Corn along with a 3.3 Billion Bushel Soybean crop. And the harvest is still on going, so both of those could and should grow further.. The lone fear which had […]

This morning at 730 CST, stocks extended their losses, with the Dow looking at around 9350 level and the S&P down to the 1012 level.. In a classic, sell the rumor buy the fact, savvy traders profited off of panicked longs, or weak shorts who either puked their longs for losses, or more likely got short in the hole after the number… Literally in about 2 minutes after the number, the indexes had made their lows, but hung around down there long enough to make the weak shorts think they would eventually be all right…
Here it is 12:45 PM and the markets have almost […]

This morning at 730 CST, stocks extended their losses, with the Dow looking at around 9350 level and the S&P down to the 1012 level.. In a classic, sell the rumor buy the fact, savvy traders profited off of panicked longs, or weak shorts who either puked their longs for losses, or more likely got short in the hole after the number… Literally in about 2 minutes after the number, the indexes had made their lows, but hung around down there long enough to make the weak shorts think they would eventually be all right…
Here it is 12:45 PM and the markets have almost […]

November beans indeed snapped below the 900 level, traded to a low of 895 1/2 and perhaps is now looking for a snap back higher, temporarily…I would be a buyer here with a stop market below.

It looks as if the stock indexes over did it this morning on the down side, with both the Dec Dow and S&Ps having a bounce rally off of their multi week low prints which came out this morning after the unemployment numbers were released. These markets are at the mercy of the puppet masters, the large funds with plenty of money to push the futures markets around, looking […]

Ok, so once again, this price action looks kind of iffy. A week ago, on Sep 24th, the Dec Dow contract had a high print of 9866, 140 pts away from the 10000 level..The SPZ had a high at 1075… today the Dec Dow printed a low of 9336 and the SPZ printed 1011, lol… over 60 handles in the SPZ and over 500 pts in the Dow..
Granted, this has been after a 6 month rally, but this price action shows how the markets go down 3 times as fast as when they go up.. This rule seems to hold true for all markets […]

Just wondering how secure the jobs data is… I find it interesting that Thursday before the report, stock indexes move sharply lower and low and behold there is a worse than expected jobs report. The Dow is around 450pts lower from its recent highs, and the s&ps are also sharply lower.

Is this a natural correction after a 57 percent run up? yes, but I just have to question the timing and the market action which preceded today’s action.
I imagine all the markets will be lower across the board in sympathy with this action.

Overall, it will have an initially bearish tone to the […]

Just wondering how secure the jobs data is… I find it interesting that Thursday before the report, stock indexes move sharply lower and low and behold there is a worse than expected jobs report. The Dow is around 450pts lower from its recent highs, and the s&ps are also sharply lower.

Is this a natural correction after a 57 percent run up? yes, but I just have to question the timing and the market action which preceded today’s action.
I imagine all the markets will be lower across the board in sympathy with this action.

Overall, it will have an initially bearish tone to the […]