WSJ Likes Corn?

Fortunately, my shorts in beans which were profits remained profits even on this bounce. That’s why I use stops.

As for Corn, CH, old crop has been on a nice bounce. We are flirting with the 100 day moving average, a big technical level. 6.50 will be a bump in the road on a rally which will be fueled by short covering in the wheat.
There’s plenty of wheat, but Europe is worried about cold, Russian Exports, etc. etc.
Australia has another huge crop on hand.
Worldwide carry out is large and fundamentally negative. That being said, the funds are short 65K contracts of wheat. […]

I still like fading the S&P Rally, as well as shorting beans

Shorter term, I am still suspicious of the rally in the S&P. I was bearish slightly since 1/23. Today is 1/27 Yesterday we seem to have had a blow off top. People got caught long and then when the negative housing numbers came out, it dampened the initial fervor to buy stocks after the Fed’s Dovish remarks.
Longer term we may go back to challend the 1350 level and 1360 levels. Over the next 72 hours, I think its better to have some 13.00-12.80 puts on looking for a shorter term technical break to profit with.

Also, we have had an impressive 10 day rally […]

S&P cash has rallied 119 points in last 4 weeks to a new 6-month high

Interestingly, the S&P cash has bounced 119 point in the last 4 weeks. On December 19th, we posted a low at 1203. Today’s high so far, has been 1322.

S&P cash is up at a long term trend line resistance today. Three points of to connect: First 1) High on 5/2/11 at 13.70 Second high 2) 7/7/11 at 13.56. Third intersection today at 13.16…. I’d sell this here and risk 5 points heat to the upside… down side target? 13.00 and then 12.80…

This is a good counter trend position. CNBC will be squawking today about the 6-month high in S&P.. That has to […]

Sayonara Grain prices for now

USDA in a word. Bearish> Looks like we are headed back to our December lows. Remember those? 11.00 bean, 5.80 corn, 5.77 wheat?
We may be headed longer term towards grain returning to being prices LESS than the price of production… Just wait, Its possible.
I hope I am right, but… if we plant 97 million acres of corn this year and 1) we get average rain fall (instead of the 2 years of near drought we’ve had in 2010 and 2011) and if the hybrids kick in, we could have a huge (2Billion bushel) carry out in 2012.
This was broken down for […]