I am long May beans at 590. I placed that trade Friday. I figure alot more upside vs downside to the trade and risk/reward looks good
Buysell, How far do you expect wheat to go before it starts to tank? There are nice bearish Divergences on the daily MACD. It should start to tank soon. From a seasonal POV it also looks like wheat has topped out. I started to leg into a short wheat position today. Just a little bit to test the waters. Regards Steve
I think within the next two weeks. We may see another drift up, but I think technically the market is showing more signs of weakness including MACD and RSI divergences. In any event, if prices rise , I will look for further averaging into shorts. As it is, I have added to my position only once , so a move down here would be good but not fantastic just yet.
Getting some nice downside today in May Wheat. I was actually hoping for a bit higher prices to average up a little more--maybe we'll still get those but it won't take too much more downside to get back the original 18 cent loss.
One wonders how long Wheat can flirt with 370- 380 before breaking down. Of course, it could go on forever and go higher as well. I still have a fairly small position relative to total portfolio, so higher prices may in fact be better for me in the long run.
apparently given the last half hour , it can go higher! Rest assured, I am looking for a place to add . Not yet though.