End of Month Melt Down

Profit Taking across the board in stock indexes as well as commodities…The Dow and S&P500 led the way with a 239 point and 28 handle “correction” off of yesterday’s bullish move…We basically negated all of Thursday’s rally from the GDP number…We had negative consumer confidence come out, but honestly, I think it was more a case of people trying to lock in some profits at the end of the month… Bulls would have liked to see a move back above 10000, but we couldn’t muster any such follow through today…
The DJZ settled at 9664, and SPZ settled at 1033…
The recent lows were posted at the beginning of the month, on the first Friday’s unemployment number… On that day, we traded S&P500 to 1012 and in the DJZ 9350, just to remind you how we have swung this month…

Crude Oil also fell 2.85, down to 77.02…I can’t wait to see if the Shell Station runs out to lower gas 20 or 30 cents, as fast as they do when crude rallies 50 cents.. It always amazes me how the gas wholesalers seem to continually screw the public to the upside…

The grains continue to be ruled by the dollar, with no heed being paid to the continual rain we have had here in the Midwest for, its seems, like all year. I am starting to think we live in Seattle, not Chicago with the ridiculous amount of rain we have seen.

In the face of that rain issue delaying harvest again, we still had the grains on the defensive, with CZ down 13 cents at 366, WZ down 9 cents at 494 and SF down ten cents at 976…
We really don’t have good support for another 15 cents in the grains if these levels don’t hold currently… Sunday night should be interesting, where we could easily see a 30 cent trading range again.. The previous Sunday nights trade over the past few months has been ripe with stupid volatility, as thinly traded contracts get pushed around by the vagaries of the large index funds… a 200 lot can move the beans 15 cents if there’s no liquidity…

So,
October is over…There was no stock market crash, and the story remains the weak/strength of the dollar…Apparently, it will be rainy and cold for the foreseeable future, and that seems to have no effect of fundamental grain prices…The crop will be harvested, eventually, and at the first of the year, we will find out exactly what all the wet weather did to the corn and beans, and whether or not it delayed winter wheat planting..
Have a good weekend…

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