If you’ve been following along, Gold found support right below 1200. We had a nice $40.00 bounce here and today looked like we might extend higher up to the top of this channel.
Look for these rallies as chances to sell, with downside cover targets toward the 1296 level.
CER
It happens all the time. And I’ve written about it again and again, but , to be consistent, lets start 2014 out with the golden rule.
Financial reporters only like markets that rally, Give em a 1 pt rally or a 1000 pt rally and they are happy. Any down day, and they are giving the proverbial duck face and seem to take on the “1000 mile stare” attributed to shell shocked WWI and WWII vets. Honestly.
Today’s a case in point.
Between 12/16 and 12/31;;; the Dow rallied almost 1000 pts!!! Good God!.
Today we were down 105, and the headlines were “Buy […]
Reality finally set in to for the bean bulls. The target of 13.00 was reached today. Covered short bean positions with average sales around 13.30.
This trend line will be key. We might snap around this T-line.
I’d be done with SF b/c its delivery month.
Move on to SH14 where the liquidity is better as it’s the top step option.
The proof in the pudding will be Monday. That’s really when everyone will be back at work.
If the funds are long and wrong here, […]
Written By Chris Robinson
Corn: CH closed down 1-1/2 cents at $4.22. New crop CZ 14 settled down ¾ cent at $4.50 ¼. There was little news on the wire, save a re-cap of 2014, which notably had corn in last place of 24 commodities tracked by the GSCI. Corn finished down 39% on the year, which was also the largest percentage drop for corn since 1960. Traders await the USDA report on Friday January 10th. South American weather continued to be non-threatening in the 10 to 14 day […]
With just a hand full of trading days left, you are probably best served by doing very little trading.
Overnight markets were closed due to the Christmas Day break. Today at 8:30 we opened up to a sea of red in the grains as traders ran from long positions. China canceled some DDG shipments (Dried Distillers Grain) this is a by product from the ethanol production (which interestingly made for a chunk of the profits from the ethanol production process. DDG’s are used as a feed substitute.
These were rejected due to GMO hits for positive on some loads. Speculation is rife as to […]
Today we have a half day and then on Thursday we start back up. With just 4 1/2 trading days left in the year, I’d be very careful putting any thing on.
We’ll start with the grains:
Wheat looks poised to take out $6.00. Below there I’d be looking to put on speculative longs to fade the herd who are going to try to press it lower.
Beans: Remain mired in a range between 13.13 and 13.50. Trade the break out, but look for a flush lower because the funds maintain a huge long position. If they need to bale, it could get ugly to […]
I wrote about trying to catch the falling knife of Gold at 1220. There were a few fleeting attempts at salvaging that level. last week we traded 1213 and then snapped back to 1267 effectively car-jacking any one who sold against that trend line too early. That 54 dollar rally translated to $1800.00 loss on every mini future you might have been short. Not to be over done, the market turned and dropped 73 bucks between that high and today’s fresh 4 year low. The round number $1200 is now in play and a lot of folks are now talking 1000 as the next stop. […]
Written by Chris Robinson
Corn: March corn settled down 1 ¾ cents at $4.25. CZ14 settled down ½ cent at $4.53 ¾. Corn spiked higher to $4.29 ¾ early and then sold off in sympathy with the wheat and beans the rest of the day. Corn attempted some independent strength, but fresh contract lows in wheat took the sails out of any rally. The managed speculative funds are net short 110,000 contracts of corn. It looked like a little short covering early on, but the trend remains down. Today […]
Look back to 2011 when Silver took a shot at $50.00 an ounce. The high was 48.57 the week of April 25th 2011. A little post- tax day present for all the metal bulls. Sadly, that was the beginning of a 30 month swoon. This March Silver broke through the bottom support of a major weekly trend line support. We were flirting with $30.00 an ounce. That failure took us down to the June low of 18.21. From the high in 2011 to that low, you’re looking at a 30.36 an ounce loss. That’s 62 1/2 % haircut. Did you invest 100 bucks in silver […]
We’ve been seeing 85 Billion a month from the Fed for quite a while now. The last time there was an inkling that the fed might “taper”, we had a correction.
Now it seems people are covering the Fed announcement this week like the Super bowl
In my opinion a 50/50 chance at a cut is a stupid bet for both bulls and bears. Fact: We are at record highs in the indexes, with the Dow rallying 1500 pts since October 9th. That’s 1500 pts in 40 trading days.. So much for those of you who got short because you feared the fed then.
[…]