December soft red winter wheat futures on the Chicago Board of Trade on Thursday gapped higher on the daily bar chart, traded up the limit of 30 cents a bushel and also hit a fresh contract and all-time record high of $7.88 1/2. Strong worldwide demand amid very tight worldwide supplies and end-users scrambling to […]
Corn has been the focus of many stories this year not the least of which has been the ethanol story. While we feel the ethanol side of the story is overblown, we do feel that the weather story is under appreciated. All the wild swings in weather, from too wet to too hot etc., should […]
The theme for this week continues to be corrective bounce and consolidation. We see many of the pairs that started to bounce last week continuing to do so this week. At the same time though we do not see the Dollar index falling to new lows so that tells us not to buy into this […]
Coffee has been building a macro bull flag on the monthly charts for the last few years now. We are nearing the apex of this long term consolidating wedge which is often the time that a market breaks out. At the same time we just saw a very violent shake out last which also often […]
The recent volatility in the markets has been phenomenal. This apparent surge in volatility truly indicates to me how fragile the economy is at this point. Many traders believed the FOMC in its latest meeting should have cut rates to help the very sluggish housing sector and the mortgage industry’s present credit crunch. The recent […]
The theme for this week is corrective bounce and consolidation of all the wild moves we saw last week. Our models sow that this is just a correction within a bearish trend instead of a resumption of the bull trend so if you insist on buying these dips do so with caution. We will be […]
The tourniquet has been applied but how long before the ‘bleeding’ problem is repaired? True, the infusion of liquidity into the system successfully stalled the inevitable resolution of some of the finest, most creative packages of loans that ever been seen in all recorded history. The problem with tourniquets is that although they provide a […]
This is a metaphor for the present structure of the Global financial systems as practiced by the G7 Central banks and Government Financial officials around the world. I read a missive from a prominent newsletter writer sometime in the last 6 to 12 months and he described a computer study of Sand piles. In this […]
I’m personally going to nibble on the long side of the cotton market this morning. I’m not planning an aggressive stance I’m just looking for a short term play. One conservative method is to purchase out of the money calls, like the Dec 66 calls for around 80-90 points. Another in my view is to […]
September coffee futures on the New York Board of Trade on Monday hit a fresh 5.5-month high. The bulls have gained solid near-term technical momentum recently, having push prices above some strong technical resistance levels and working prices up from the July low. Prices are in a steepening uptrend from the early-July low. Bulls are […]
