Discussion in 'Journals' started by Buy1Sell2, Feb 7, 2006.
Still short the March Wheat at 350.25
Maintaining the short postion. looking for a place to add to the short position
What is the spread in buying or selling in physical commodities like Wheat?
depends on whether or not it's at night or not. Corn is probably the tightest spread. I would say the spread is usually an eighth or a quarter sometimes in wheat. To be honest I use limit orders to enter and when I get stopped out, most of the time it's at my price right on the money. Might get slippage of an eighth.
This year I am developing a model for longer term trades on these markets. It's based on buying or selling on the open or close. At the moment I haven't been able to figure out a way of accurately calculating the potential slippage so I was interested in the spreads. As I swing trade it's not that a big of deal, but rather interesting nonetheless.
I am also short Wheat. Hopefully today's upswing gets rejected tomorrow!
weekly charts favor the upside a bit, but I am seeing action on the daily that may suggest downside potential. In any event, I'll average up to a point and then hold if necessary. I'm very conservative, so I won't get overextended.
I am short from 345ish...not worried...see how it develops over the next few weeks...
What bearish technical patterns are you seeing with March wheat? I agree that the shakeout that took place in grains yesterday is likely the first leg of some downward action. I do see a bearish MACD divergence starting to form in the dailys of wheat.
We had a gap up and I don't see a breakout forming is the main thing. Also I see the highs corresponding to a lower peak in the histogram. The RSI does not show that yet, so I have a small position on for now--that way I can average up.
so far so wrong in March Wheat. Longer term play and I will be looking to add to the short in the near future
Separate names with a comma.