No one could have predicted that North Korea and South Korea would start shelling one another overnight. However, this looks like a push which could give us short term-flush. I am not talking about a debacle, by any means, but a healthy correction was overdue. The stock indexes completed a 2 year stealth rally, with the Dow cash alone rallying back almost 5,000 point from the Panic Lows of Spring 2009, when we had a low tick of 6,649.00
This bearish world development, combined with thin holiday markets, could set the table for a flush across the board, in grains as well.
Already, overnight, December corn flirted with its recent low trading down to 5.10 1/2. Friday is Dec options expiration, and there are a ton (19K) to be exact of 5.00 calls. The market will most likely settle below 5.00 and all of those options will expire worthless. Watch that trade. Today is Tuesday, but there’s not a lot of “turn-around” in this market the I can see, although I could be wrong.
As I write this, its 9:01 AM, The Dow Cash is flirting with 11,000, trading around 11,063, The dollar is up almost a penny at 79.44 gold is up 14 bucks at 1373. Could the Korea shelling be enough to get us back up to 1400? I would want to sell gold there the first time that level is hit.
Good Trading
