|
| Several things to consider.
Obviously, those in the stock market expect the arrow in the chest, much as Custer even though the political types are on the very distant horizon & in reality they don't have a clue as to what to do...but they are like amateur traders and whatever they do, are most likely to overdo it. Therein lies opportunity, but too early to consider.
When stock markets have these sharp breaks it always seems to reveal someone or some firm who MADE THE BIG MISTAKE & that might be some ugly news to anticipate.
Margin clerks in both camps, stocks and futures, are likely to have a busy day.
Soybean & corn futures are most likely going to trigger a variety of technical systems & we may see the shoe clerks, doctors & dentists learn that first important lesson.
Rain in argentina, but I don't yet have my detailed weather data so am up in the air on that element.
I believe corn will have some support down another 20 cents, but want to watch & let the market tell me if I want to cover shorts. May not. Corn has way too many bulls with unrealistic ideas, in my opinion. Suggests to me, as we approach mid-february, the acreage question may again resurface.
Soybeans might require another couple of days to unwind the funds, if they choose to do such.
The other question, is how much producer selling will be generated here and on rallies as they may have lost some confidence. We don't know the answer to that question.
If this is the first major break of this new year in these markets, and if it is sustained for awhile, then have to wait for the bears to have their day and may set up a new consolidation pattern at some point before a good grip on demand is settled.
Have to also measure whether lower prices do uncover additional export demand.
In my case, I am not going to read any news, I do think I will turn on CNBC this morning as there might be some humorous stories as the talking heads try to explain this deal & most important just watch the market unfold.
Most importantly, retain a sense of humor about this thing as it is historic, there will be another day & I do feel by mid-june, soybean & wheat bulls might be munching on bear meat although I suspect it might require some Heinz 57 as I never eaten bear meat.
Edited by SeniorCitizen 1/22/2008 07:28
| |
|
Next Few Days
