After the long weekend, it seems that we once again will have fresh buying interest in corn and beans. Demand rationing levels are seemingly above the horizon still.
March corn traded up to a new high at 6.62. I don’t think there will be real reaction until we get to 6.75, 6.85 and then 7.00.
Producers are sitting tight. No new selling seems to be showing up, for the time being.
May corn has rallied 1.44 from its Nov 23rd low. Bottom line, when the blow off top comes, it should set up for a spectacular pullback.
My sell signal will be major media out lets talking about grain prices.
My opinion is we won’t see that until we get spot month futures to the psychologically important round number at 7.00
Ditto for soybeans. March beans hit the resistance at 14.30. I have to think that 14.50 will set off buy stops, and we are setting up for a run up to 15.00 or higher. Beans have a mind of their own when they get rolling.
I am resisting my natural urge to try to sell new highs here. I’d rather be buying dips.
As for the stock indexes, 12,000 is the target for Dow Cash and 1300 for the S&P500 cash.
As other “investment” opportunities wane, you will see money come back into the market. I am somewhat more friendly to the stocks, simply based on the fact that my bear radar has been going off for the last 2 weeks.
I read quite a wide variety of media, putting it mildly. I am getting a general feeling of continued bearish ness underlying a lot of the opinions of many experts across the board.
Over the next few weeks, I will be mentioning specific cases, if they are glaring and well publicized. This weekend, I heard a new drum beat from the end of world crowd.
They continue to want to own gold, (especially now that it has rallied 1100 bucks of its 1990’s lows) and silver (again, because they fancy themselves “momentum” traders who are buying new highs). That makes me pause. I just can’t help it.
I want to have resting sell orders to sell every new high in the metals, of course, with a protective buy stop above that sell area. I think its the only way to go. You have to be heading down stream when the rest of the herd is charging up stream.
Good Trading
