All the contracts I look at are in the red this morning, except for the lone bull, Jan Beans. These beans look bound and determined to explore the space above 1050… The contract has pretty much dis-associated itself from the crude oil. For about a year, we moved in sync with crude, but for the past several weeks that direct relationship looks to be more of a passing connection currently.
Crude is down 70 cents at 76.65 currently while Jan Beans are up 6 cents at 1045, zoning in on the over night’s session high print at 1050.
There is a very strong tendency for the overnight high or low to be challenged during the trade session, no matter, it seems, how “far” that number might be. So I think there’s a good chance, with Jan Beans being the only thing higher,that strength will beget strength, and while traders are selling the Corn and Wheat and the products, they appear to be buying the beans as a hedge against those shorts.
The stock indexes are range bound so far, with SPZ in a ten handle range, and the DJZ in basically a 100 point range, with selling pressure up at the 10313 level.
Its Friday, and its been a bullish week. Look for some profit taking, perhaps, although I don’t think you will see a lot of new short positions initiated due to the coming weekend.
Good Trading
