Its not a bad time to be short wheat, since we are heading into a three day weekend, end of the month profit taking, and harvest season. I will try and hold my positions through this week and take the heat. I am still deciding if I should hedge or not. Edit. I just convinced myself to sell my wheat contract instead of hedging it. Hope the slippage is not too bad.
I believe this to be a good idea. Congratulations on your profits! Yeserday's close constituted a bearish RSI divergence although we did not have a MACD Histogram divergence yet. I shorted at the close and doubled my wheat position. If it bounces, I will add more. Beans on the other hand look to have a bit of a bounce playing out, so I may add on the next downward signal and just hold where I am at for now.
As the harvest begins in June/July I assume that prices will dip a little bit in wheat. When this happens I will bet the house on wheat making new highs. Edit. just sold my corn due to long weekend and weather concerns.
Covered my oats at 189. I am long term bearish on oats but could not resist the fast money on the open. Oats also tends to fill the gaps.
Yeah, it sure did. I am pissed I covered so damn early, I just wanted to be out every thing by this weekend. Oats are mainly planted in the northern plains along with spring wheat. They both enjoy the same weather conditions so the two contracts might be following each other in the near future.
I don't see a reason just yet to cover July Oats. The chart may change but right now, it still looks bearish. July Wheat looks to be revving up for a bear move, but I think I would rather add to my position on a daily bearish divergence which hasn't happened yet. The scenario would be as follows: Wheat would make some further new highs, followed by a period of indecision, then I would short again. I am still short Wheat, I just won't add until I see that. I am also still short July Beans, but watching that closely--Downside momentum seems to have faded a bit. I am looking for a triple bearish divergence in July Corn before I short it. That potential is there though as well.
All, I find your journal very interesting. I have been trading Futures Indexes for over a year and wanted to look at something different. I am a very technical trader. Can you recommend any resources to read up on the fundamental side of trading grains? I understand there are certain USDA reports to watch out for but I am really lacking the knowledge of new planting and stuff like that. Thanks! Ibby