The dollar went through the 78 level with a vengeance. Perhaps now we’ll see what really happens when the dollar carry trade winds out. I am not surprised that we had a bit of a pullback without first printing the 11000 in the Dow and at least 1250 in the SP500. It wouldn’t be the first time I got bullish at the top. However, a 200 point move lower is hardly anything to start freaking out about.
The Republican win, signaling a return to gridlock in Washington has to be a positive thing for the markets. I wouldn’t shift away from that choice until we have another 200 or so down move in the Dow. Until then, I think this is a dip to buy.
In the grains, all I can say is look out below, but watch for the short-covering rally. We finally had a drop in open interest of about 7K in the corn. Not much but its a start for the bears. The beans are moving lower, looking to test a long term trend line on the weekly charts. Pull it up and look.
The corn and wheat look vulnerable to further melting.
That is all.
CER
