1) Make sure you have buy stops controlling risk on the Sep Dow short position if you have futures in place.
2) Make sure you have buy stops in the August bean position if you have futures in place.
If you want to remain bearish, but limit your risk, look a the following puts:.
Buy an August 1300 put for 24 cents. That’s $1200 bucks with unlimited profit potential.
In the Dow, consider at 1500 put for 153.
We’ll watch how these options play out over the next 2 months.
A settlement above resistance at 14.79 would get me out of my shorts. We’d be taking a 15 cent loss from our sale average at 63. I started selling it at 55 and sold last at 70. Downside profit objective would be a cover at 14.25. Trying to make 40. Risking 15. That’s 4:1 risk reward I look for.
Today should be interesting. Crop conditions dropped by just 2 percent. However, funds are long beans and short corn.
They will push their winner long in the beans, and may have to flip out of their net short corn position. CZ could very easily rally back […]
This is a chart of spot beans, August.
We had a nice buy today here at 14.21. However, I’d be short here against 1468. I’d be playing short side until 14.75 level.
This is purely a speculative play.
PS. The Dow September futures contract is still under 15,425 as I write this.
Maintain shorts. Have your buy stops in above, in case we pop.
I just think we came too far too fast and are due for a haircut here.
If we settle higher above that 15,500 level, […]
This chart is a daily of the September Dow Index. As you can see, its at a critical point here.
In just the last 3 weeks, we’ve rallied 959 points from the June 24th low at 14,474. Last Friday’s high was 15,433… 15,438 on May 28th…..15,448 contract high on May 22….. If we can SETTLE above 15,530… I believe there’s a 70 to 80 percent chance we trade up to 15,800.
However, my position has not changed. Short, with a buy stop in case we take another leg up.
After a 959 pt rally in just 13 days, I think its over extended. I’d be […]
Corn: December corn settled down 17 ¾ cents at $5.09 ¼. For the week CZ gained 18 cents. Today’s trade was volatile as we combined a Friday with the last trading day of July futures. July corn traded in a 26 ½ cent range on the screen, with a low tick at 7.00 ½. On the post close in pit trading, with no limits CN traded at $8.00. December posted its high of $5.27 on the pit open at 8:30 AM, headed south and never looked back. When […]