Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (16127)	11/17/2004 8:45:14 PM
From: mishedlo	Respond to of 116555

CORN Hi, this is Tim Hannagan its Wed. Nov. 17 and the markets are closed. Note, my next report will be Monday as in out of the office Thursday and Fre. Well, as I called for on Tuesdays update, we took out our 2.16 resistance today picking up buy stops with a 10 minute opening high of 2.19 a 4.5 cent gain. After last Fridays U.S.D.A. crop report revealed the last bearish supply side report of the year, it wsa my suggestion the massive short position in the market would begin to slowly buy back those positions and move to a neutral position on their books. Fridays low basisi March was 2.07 with toidays high 2.19. So far, so good. Remember the trade isn't buying long their buying back shorts and this is givin g us our short covering rally. They wont go form a net short to net long position until spring when new crop planting and growing becomes a question of fear or uncertainty our close over 2.16 tells shorts still in the market to buy out. Stay long March corn with Jan. 2.10 puts at 2.4 cents or $125 for protection or sell stops at 2.09. BEANS If you read my Tuesday report you learned something about reading chart leaves markets are creatures of habit and that chart pattern couldn't be clearer than March would take out resistance of 5.45 and pick up buy stops for a big 10 cent gain in the first 5 min. Like corn, I stated last Fri. that our Friday U.S.D.A. crop report was our last bearish supply side report of the year and would bring on short covering into months end. Jan. futures low Friday was 5.11 with a high today of 5.55. Fridays March futures low was 5.13 with a high today of 5.59. The close over 5045 basis March tells technician to cover shorts or look to buy. 5.45 now becomes support with 5.80 as next resistance. Stay long with Jan. 5.30 puts at 8 to 10 cents for protections or sell stops under 5.40 WHEAT Wheat basis March pushed to our upside resistance of 3.28 on the opening range. Fundamentals are unchanged. Our winter crop is off to a great start but late next week could bring the soft red wheat states in the midwest a major cold blast and snow storm. Go to the weather site WXRISK.COM for updates. This weather system brings strength to the market at a time when demand is weak. Dec. and March futures closed right on resistance. There's a small gap on the chart back to 3.23 that could get filled best I would stay a cautious long March with stops under 3.20 and or Jan. 3.15 puts at 5 cents or $250. for protection.