Stocks range bound/ What’s eating Corn futures?

Dow futures can’t get above 13,200 or below 12,650. 600 point trading range looks like our lot for the foreseeable future.  I can’t really see any thing on the horizon which will move us.  More that likely it will be something coming unexpectedly out of Europe.

The old adage sell in may and go away may once again play out.  However,  I read a couple articles to that effect on the wire over the past week, so that is suggestive to me that we will stay more in a trading range rather than see an acceleration below 12,500.

The media will continue to have a field […]

Yesterday’s Sales in Dow and S&P pay off today

China’s GDP came in at 8.1, Analysts were looking for 8.5 or higher. End result? Dow currently down 105, S&P currently down 11 handles. Not a bad way to end the week. I hope you had a short position. It’s 1:30 pm and I am heading home for the weekend. Beans, Corn and Wheat all took it on the chin today. corn down 10, beans down 5, wheat down 16. Next week could be ugly for corn and wheat if technical levels are broken. The beans may be the last stalwart for the bulls unless we start getting talk of a real drought. Have a […]

Sell this rally in front of China’s GDP Tomorrow

In my opinion, this is a bounce to sell. Sadly, we never got to my buy levels. I had 12,635 as my buy. The low was 12,648. In the S&P, the low was 1357, I had a buy down at 1338. So, unfortunately, we didn’t get chance to buy it there. Quite honestly, this is a rally I’d look to sell. If the S&P gets close to 1400, then sell some there ditto for the Dow at 13000. Use those levels to get short. Risk a reasonable amount. I believe between now and the end of April, those shorts will be very profitable. If I […]

On Mar 22, GS called stocks “the buy of the century”

Interesting that on Mar 22nd an article came out penned by a GS strategist arguing for the long side of stocks and for being short bonds.
The Dow, at that point, was hovering at 13,200. Since that article, stocks have dropped 550 points, capped off with today’s trade down at 12,648.
The broader S&P posted a high at 1422 at that time. Today? Try 1357 for today’s low or 65 point hammering.
I just think its ironic that Goldman puts out a huge buy story and we melt. I don’t see how if clients bought on that recommendation, they have had a 4% plus haircut, […]

Bullish number in grains followed by a sell off

Buy the rumor, sell the fact. A neutral to bullish number followed by a puke fest?
This suggests a head slap is coming for unpriced 2012 grain.

Today a friend sent me an article saying that about 45 percent of producers have nothing sold for 2012. It could get ugly for a farmer if they don’t have a good risk/management plan.
How ugly? How about ugly enough for Willie Nelson to have a chance to do a whole new round of fund raising for failed farmers. How could that happen, with near record high prices historically?
Very easily. If we return prices to below the […]