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Wow, these funds really came for the grains today… We have had over a 30 cent rally in Soybeans alone up 22 cents right now at 995.. We posted an early low at 961 1/2, rallied 13 cents like nothing, hesitated at 83, then smoked higher on buy stops above the recent high at 86 1/2… Funds are definitely coming like gang busters… Wheat is up 7 cents at 539 and Corn is up 3 cents at 397…It looks as if the funds bought corn last week, now they are doing the beans, and next week, most likely they will come for the wheat if […]

One quick note, this blog has an area for comments and questions. You can also email me with comments or questions if you like…

I wrote last night that I thought there would be resistance every 25 dollars on the way up to wherever the top will be in Gold..I picked that number, because its an easy, round target as we trade up through virgin price territory…We posted a high today, so far, at 1,123.40….Nice to see someone has a sense of humor to put out that .40 print… In any event, that was close enough to 1,125 for sellers to come in and nail […]

Before I go to bed, I always look at the overnight markets… So far, in early trading, only the Gold continues it onward and upward march higher… as of this writing its sitting near its “new” high at 1122.30… As we are in virgin territory, it is honestly difficult to predict at what point we will get some selling pressure to cool this market’s jets higher…I would continue to look for resistance at 1,125, 1,150, 1,175, and so forth in 25 dollar increments… Obviously the next big psychological number will be 1,500… In the dollar Index, we have seen the 75 dollar area be violated, […]

The grains were unable to hold onto early gains this morning, as hedgers used the higher prices to lock in profits. We had another afternoon buy program, evident if you look at the 5 minute charts. Around 1145 we had a bounce in all the grains, most likely due to more index fund buying, in sympathy with gold’s strong finish, and the continued weakness in the dollar.
Apparently the whole world is now short the dollar, so it seems to me that while they may be right, that market is ripe for an ugly correction to punish shorts who have come to the game late […]

I should have known this morning that it was a good idea to fade the new high,if only for a scalp. I awoke to my morning radio ‘financial commentator’ breathlessly talking about the new highs in Gold… And, I still think there will be resistance at every round number on the way up, probably on the nickle and dime, because that’s how people focus on these new high numbers, so 1120, 1125, 1130, etc, etc, etc. Each new high will be heralded until there are no more new highs, and right now the highs are being fueled by momentum investors. These are the same boys […]

I should have known this morning that it was a good idea to fade the new high,if only for a scalp. I awoke to my morning radio ‘financial commentator’ breathlessly talking about the new highs in Gold… And, I still think there will be resistance at every round number on the way up, probably on the nickle and dime, because that’s how people focus on these new high numbers, so 1120, 1125, 1130, etc, etc, etc. Each new high will be heralded until there are no more new highs, and right now the highs are being fueled by momentum investors. These are the same boys […]

This morning was a perfect example of being flexible on a trading plan. If you look at my first blog this morning, I was very bullish…That was warning sign number one. By nature I am always bearish, and for me to flip and get all bulled up should have been an early indication…As to why I am a perma bear, its because as a day trader/scalper, which is what my M.O. was for over a decade, being short always gives the quickest reward when you are correct. All markets move lower about 3 times as fast as they rally, unless its a rally off of […]

Our recent low in SF was 551 1/2 on the daily charts…Subtract that from the recent high at 1022 1/2 and you get 71 cents.. half of that 71 cents is 35 roughly which gets us to our high at 86… Look at today’s high….Should have been a seller there…It was good for a ten cent profit..
FYI, I did not sell it there… I thought we would have buying today off of the gold and stocks…
Just a quick note the importance of staying simple and trading 1/2 way back moves…

On that note, I did some quick and dirty math… Call the high […]

Wow, New highs in gold at 1115.80..SPZ at 9 month highs, above the 1,100 level…Ditto for DJZ up at the 10,300 level…Corn up a penny overnight, Wheat up 7 cents and Beans up 10, looking at the 980 level…Obviously we are ignoring USDA numbers and going with the commodity speculative flow where we see money pouring into Corn as a hedge against a correction in the outside markets.
Dollar is at a 15 year low, and now it seems that every local newscaster on the 6 o’clock news is a currency speculator/commentator…Come on people, that used to be the job of Lew Dobbs alone…Anyhow, Nothing […]

World Oil Stocks are currently close to what they were 11 years ago when we had ten dollar a barrel oil.. Remember those day’s? So if the stocks are the same, then the current prices have been reached via 1) currency devaluation of the US Dollar, and 2) Inflows of speculative funds from all types of “investment vehicles”…With the huge run up in Oil prices over the past 3 months, the huge 3700 point rally in the Dow since last March’s scariness down at 6500 up to today’s high at 10,260, we have a situation now where we are seeing funds flow into Corn on […]