In my opinion, New crop beans are a good sale here. I’d like to ideally sell SX at 13.40 The market is getting supportive news which should be bullish. However, the market is re acting sluggishly.
Perhaps the 8 month, $6.00 rally is long in the tooth. We have already had two size able corrections in the past 6 months, with no follow through. In fact, traders who sold into those breaks got chased out both times with rally’s of 3 dollars back in November and most recently in March, almost most 2 dollars. Stubborn bulls have gotten paid for being stubborn since last June 2010. I think SX is vulnerable to a break down to 12.55 and then 12.21. A really nice break could get us to 11.60 or even 11.04.
If you are a regular reader of mine, you know that I rarely make calls such as this. However, I believe this short position, especially if we are given a rally back to 13.35 for 13.40… would be a terrific risk/reward trade.
That is all.
