If this is a bearish response to Bernanke, I’d hate to see a bullish one.
We had an intial sell off in the stocks in response to Mr. Bernanke talking today.
As of this writing (2:12PM CST) we are down just 140 pts. Back in 1998 through 2002 we’d have 300 pt trading ranges regularly.. so I can’t really get upset by one that’s less than 200 today. And we had 300 pt ranges w/ the average at 10000. The average is at 15,000 so the percentage swing of a 200pt range is even smaller.
Don’t tell that to the Financial Reporters out there though..It seems as though a 100 pt move is just as important w/ the Dow Jones at 6500 (back in 2009) and compared to today w/ the down over 2 times greater in value at 15,300.
I still am cautiously bullish the stock indexes. Mostly because its the only game in town, or so it seems.
Recently, it seems as if money managers are intersted in getting long commodities once again. Money flow continues to go into bull spreading corn and beans.
If the bull story doesn’t pay off in the grains this year , there will be a lot of money mangers getting very small year end bonus checks. Time will tell.
For now I want to be short corn against this 3 year old trend line. If we settle above 5.75 for two consecutive days, then I’d cover and join the running of the bulls. Til then.. I am staying short.
There are 7000 net short dated july CZ 5.50 puts in place which expire this Friday.
That tells me one thing only. We will damn sure settle above 5.50 so those options go off worthless.