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If you have been reading this on a regular basis, you will know that I have been only interested in selling new highs in the Stock Index futures, with very tight buy stops above.
Today December Dow futures moved below support at 13,400.  This is an opportunity to take profits, as well as manage profits with trailing buy stops.  If you have profitable short positions on currently THE WORST you should be looking at now, with your trailing buy stops… is a push.
We could get a nice break here down to 13,150.  That’s a potential $2500.00  a contract profit.
In the S&P’s I’d be […]

This Friday we have a USDA ending stocks report.
I’d look for a sell off here in the next 3 days to take advantage of any forced liquidation.  In the Beans,  look to buy at $15.81 with stops and then at $15.17.
If we get a nice break in CZ down to 5.70 area,  I’d like to buy it there as well.
Chicago December wheat will break in concert with corn.  I’d be interested in buying wheat at the 8.50 level.
That’s about all for today.

Keep looking for a break to buy if Crude keeps breaking as well. We’ve broken down 7 bucks […]

We are finally getting some good volatility in the beans, as apposed to the relentless rally we saw which started in June.  After a $5.40 cent rally,  with an unusual lack of any good meaningful corrections,  we finally are getting some action which is, from my perspective,  trade able.

Yield reports from across the country are en masse,   much higher than expected.  Clients who had been expecting 20 to 30 bu  a month ago are coming in at 50 to 80 Bu.

Funds are still massive longs.  And yesterday’s rally was very light volume.  That tells me everyone who wants to be long is already […]

Rumblings of trade issues with China. China and Japan arguing over a small group of islands.  China in particular has had demonstrations and protests.protests were orderly in Beijing, with several hundred people circling in front of the Japanese Embassy demanding Chinese control over a small island group known as Senkaku in Japan and as Diaoyu in China. Protests were also reported in other cities, including Shanghai, Guangzhou and Qingdao.

At the end of the day, history had shown that sometimes its the random historical grievances which give rise to present day issue.

In any event,  I can’t see how this has bullish ramifications for […]

Back in the 80’s there was a commentator whose name escapes me.  He had a sayng , “rule number one– don’t fight the fed”. 
I can’t say anything more than that.  The Fed’s decision to buy 40B worth of mortgages every month with an open ended time frame is a game changer.  In effect,  printing money.  It may be what we need to finally get jobs going again.. I hope it works. In the long term its very inflationary but give the choice of inflation or deflation, a society is probably better off with inflation.  Deflation is Post Wiemar Germany and 1932 US depression.

Back in the 80’s there was a commentator whose name escapes me.  He had a sayng , “rule number one– don’t fight the fed”. 
I can’t say anything more than that.  The Fed’s decision to buy 40B worth of mortgages every month with an open ended time frame is a game changer.  In effect,  printing money.  It may be what we need to finally get jobs going again.. I hope it works. In the long term its very inflationary but give the choice of inflation or deflation, a society is probably better off with inflation.  Deflation is Post Wiemar Germany and 1932 US depression.

For the first time in history, China has imported twice as much gold as US Treasury Debt.
Politicians can talk on both sides of Left and Right about the Deficit and who “has to be made to pay”.  Like Nero, they watch as Rome burns.     The rest of the world is voting with its feet and with its check book.

China wants gold rather than US debt.  The US earlier this week dis continued one-way flights back to Mexico for illegal immigrants.  The reason why? Because for now,  the flood of individuals coming to EL Norte has turned to  a trickle.   The demand is […]

December Gold popped above 1700. This opens the door for a run back to the August highs at 1900.  I’d buy it and get a trailing stop below. I’d buy it and not look at it on a day to day basis.  Decide what’ you’re willing to lose. In this case, If you buy it at 1735,  you have a risk down to 1640 on a surprise correction. Roughly 100 bucks an ounce risk.  Look at 1800-2100 call spread as well to cheapen up the cost of the 1800 call.  Bull call spreads are nice because they give you a defined risk/reward.

As for the […]

Hope you took profits down below 13,000 as I requested.   Dow futures  are now poking at the top of the range.  REMEMBER  back on June 4th we traded down below 12,000 , with a low tick at 11,884.  In 3 months we have returned to the top of the range.  1,424 points wide.  Its about time for Dem’s to take credit for the warm fuzzy the stock indexes are enjoying currently.  Too bad we can’t have Clinton give a speech every week.   That was one of the greatest political speeches I have ever watched. He has a great style. A la Reagan. Even if you […]

Its 11AM CST.  Dow futures trading last at 12,983. Today’s low at 12,965 is resting at the lowest level in a month.  Take profits on shorts.  Move stops down to insure worst case scenario break even.
Downside targets 12,720, 12,613 and then 12,375.  That is all for the Index position.

CER