|
| The market has a natural inclination at this point to seek the $12.90 record high. This may kick off another round of buying, or may find abundant sellers, no one knows at this point.
Sometimes, it is important to sit down and list the known factors. Who is currently bullish? Who is currently bearish? When everyone is bullish, where does the selling come to keep feeding the market? Markets move to the orders.
Index funds & hedge funds are bullish. Small traders are covering shorts. Are producers about even? Or, are they getting too bullish?
The market feeds on 1. New money 2. stuck shorts.
When the market begins to liquidate, longs selling & shorts covering...at what level I do not know, it will be over.
At this moment the concern is Argentina. The rains over the weekend did not fall in the places needing moisture.
Do not forget, acreage is a function of price relationships. Those relationships can be determined in a DOWN MARKET as well as a bull market.
At this point in time, I am wondering how many hedge funds are in this market being operated by 25-30 yr. old traders having NEVER experienced a wild top & whip saw atmosphere....some of those boys did not do well in crude oil the past year.
While I remain friendly to beans.....take great care over these next days. Pig crop report today. In terms of importance, the Jan. 11th stocks report is the most important in my opinion.
| |
|
The previous high
