Dow drops 180 pts on the last Friday of 2012

  • Posted on: December 28, 2012

I wrote this AM and had 12,851 as support, followed by 12,740.  Today’s low so far has been 12,843.
Hopefully you covered some shorts here.  I forgot completely I had that as a buy level.  I was busy all day focusing on the small bounce in the wheat and the corn, which I think are oversold, yet still vulnerable to another flush.  I remain short a small position, but I have taken profits at this 12,850 level.

I have also been watching the rally in cattle over the last 10 days. We seem to have come too far too soon, and have left some room to back fill down below.  I’d be ready to run, though if we take out the recent contract highs.

The Dow has one more trading day on Monday the 31st.  As I finish writing this, the cash market is closed and the futures are now selling further lower,  now down 191 pts..  Ugly.  

We’ll see what happens with the fiscal cliff deal on Monday.

Hope you made some dough here on this break.   Hindsight being 2020,  I did get stopped out above 13,300,  but fortunately, I put a short package back on.
December is living up to its reputation for being a difficult month to trade.

Have a great weekend.
CER