11,905 was today’s high tick in dow cash. 12,000 can’t be far behind. And the feeling is still bearish. This is shaping up to be a creeping rally. Those are the hardest to trade, because it takes time to get paid off for being on the “right” side of the market movement.
However, an 83 tick trading range is tough to navigate through. Ditto S&P 500… High tick today of 1291.21;can 1300 be far away, I don’t think so. However less than a ten handle range is tough to navigate through.
Corn and Beans look good, but honestly, they are both vulnerable to corrections. Wheat I like the most, based on today’s action. We finally broke to the upside on WH after 7 weeks of a 79 cent chop fest. Today’s action opens the door up for another 30 cent higher push.
Be careful, however, many people are starting to look back to the highs of 2008 as to where this market is heading. A female market guru, who shall remain nameless, called for 10.00 wheat today. Well considering that we are only a dollar away in new crop and 80 cents away in old, that’s hardly making a big proclamation. We have rallied so much in the last 2 months. Where were these bulls in June, when we were down at 455??
Cattle look to have some profit taking on increased placements by 16% compared to last year. We could see a correction, but after the rally we’ve had, that probably won’t hurt cattlemen too much.
Cattlemen need to be worried about feed costs. Period.
Crude Oil did what it does best. Punish weak longs. I don’t want to be long oil until 1) it pulls back to 84.25, or even better 81.65…. Flip side, if it settles definitively above 92.50, then that opens the door up to 100 plus oil.
I would really really love to buy crude at the 83.00 to 81.65 band.
That is all.
Have a great weekend.
CER
