Tuesday, August 9, 2011

End of Day Aug 9

Equities had a strong showing today, likely putting an end to the decline. Bonds were up very strongly on the Fed announcement, but gave back most of the days gains by the close. Natural gas is the strongest of the industrial components, but both copper and crude followed equities. My biases for tomorrow are (1) leave bonds alone, and (2) any trading of this group tomorrow likely should be from the long side.

Gold was up but silver down. Were I going to trade, I'd trade silver from the short side.

In Forex, it appears that the appreciation of the USD is over, and we will be returning mostly to the USD down. Specifically, $A and $C both traded at parity against the USD, but both seemed to have reversed course. The next moves look to be against the USD. The € and the £ are too choppy to provide decent risk/return ratios for position traders.

Corn is in neutral. I think the bull market will resume there, taking prices up very considerably. My current target for corn is 820. Wheat is in neutral with a bearish bias. Beans are in bear mode, but I don't much like trading the short side this time of the year. Rice is in neutral but my target for it is just under 1900. Oats, like beans are in bear mode.

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