I am still short Dow Dec Futures around the 11,700 level The high so far has been 11,838.There is an old high at 11,900 back on August 4th. I’d be willing to take some heat here. As always, though, you have to manage your own trading account.
Sitting here, I am watching the Cable news stations touting the fact that “The Dow is on track for its best monthly performance since 1999?” Seriously? There is a whole week left to trade (one) and (two) what is so magical about this week that we won’t have some political blow up in Europe over the amount of the haircut in the Greek debt which will ultimately be lopped off? This is the problem when you have 17 different entities trying to agree on anything in a timely fashion.
Show me a committee that works and It will be the first one in history. If committees worked, the Soviets would have taken over the world in the 50’s with their “Five year plans”.
On to the grains…
We’ve had a bounce in the grains. Is this a dead cat bounce? Bean harvest is 90 percent done. Corn in 70 to 75% harvested. The pleasant weather over the weekend let farmers put a huge dent in the harvest.
My opinion, for what that is worth, is that farmers are going to store grain. The strategy will be to sit and wait for higher prices. My first thought on that is “good luck”. Markets exist to hurt as many people as possible for their reasoned ans well though out opinions. If enough farmers plan to store and sit, then we won’t carve out lows until those stored bushels are sold. We are heading down the highway beginning the start of a grand game of “chicken”. Will the commercials and China blink first? Or will it be the US farmer?
That is all for now.