I was looking for a rally like this yesterday in the grains. When we didn’t get it, i thought we would get lower. We got down to 506 in CZ after the opening, got all the locals short and then snapped higher twenty cents. I was still long a small amount from Sunday night’s spike down to 509, when I bought 511’s. I had a stop on those at 505. For some reason, I did not get stopped out, and low and be hold, we rallied higher. Of course, tomorrow we could be right down lower again. This volatility give you a lot of opportunity.
I have resting orders to get out at 555 and get short, still. Weirder things have happened. We have the weather down in South America looking dry, dry enough to make traders talk about la nina, drought, etc. etc. Its a time honored tradition. Talk up the drought possibility.
I still want to stay short the stock indexes, but I have buy stops above guaranteeing profits on current shorts.
