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EC SD | It depends on your personal exposure to the market at this time and also your risk tolerance...
If you are currently not adequately hedged on expected production, then yes, best to reduce remaining price risk with more hedges. It certainly is later than ideal market timing, but the downtrend is still in place today, and another 50 cents or more could be lost in price from here to the bottom. If you want to speculate, and have a tolerance for more risk, then yes building a larger short position looks to be the right move based on today's weekly chart.
At some time, maybe next week, maybe next month, maybe in January, the current down trend will become less clear on the chart. For me that is when weekly MACD goes above the MACD signal line when both are below zero. At that time, it will be best to start moving back toward neutral exposure to price in case a weekly trend reversal follows. If the weekly charts then confirm a trend reversal, it would be time to finish moving to neutral and even start building a net long position.
There are many other ways to trade it, or not trade it. I am just providing the weekly MACD approach here in my posts today. A month or so ago, I posted about using the seasonals as a guide. There are lots of approaches out there and that is what makes a market. | |
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Corn/ Bean Bottom
