Good Morning,
Dow cash is only 75 ticks away from that 11,000 print. Granted the national press won’t get their toes curled up until we settle above 11,000.. However, when Dow cash hits that print, I would want to initiate sell in Dow Futures.
As for Corn, Wheat and Beans…
Its looks like a relatively sleepy Monday.
CH looks like its made a double top at 6.66-6.67. Sell there the next time we head up there. Don’t risk more than 3-5 cents however.
Crude Oil continues to punish all the people who got long up above 91.00, 87.00 could be a short term bottom. Use a move their to take profits on shorts. A break to 86.34 should be bought and managed with stops.
A break to 84.86 should be bought more heavily. A break there would mean that all longs would have lost a nice 5.00 chunk. Hopefully, at that point, they do what most wrong headed traders do, flip and get short. That’s when I would want to be a buyer.
Gasoline prices are a function of the lack of refinery capability in the US, as well as high state and municipal taxes. State and local governments could be given a double whammy on gas prices. If they spike up, say to the 4.00 a barrel level, then drivers will curtail driving. A drop in consumption, will kick the coffers in the pants, so to speak. Another case of unintended consequences from well intentioned politicians.
Any how,…
By the way, I like being long wheat now. The settlement above 8.00 in WH was a buy signal, and we have broken out of the 2 month, 70 cents chop fest.
We could move lower tomorrow or today, but longer term, I want to be a buyer of dips for wheat.
Good Trading
