wh8 wheat future DO NOT SHORT! SHORT CANNOT COVER THERE ARE NO SELLERS! don't take my word for this read the chart. the upside limit is 30 cents, it maxes out the limit every day in 10 minutes. up 30 cents in 10 minutes stay at limit all day long until the next session then limits up again in 15 minutes there are no shorts no one dares go short as the session only lasts 10 minutes and only goes straight up and then sticks to the limit up. long can sell at any time for the max up price there will be 35,000 buyers payoff is $50 a point per contract there are 30 points $1500 per contract in 10 minutes 2X a day 1003 -1033 -1063 -1093 consecutive downside is you have to pay attention to it all night just in case the 35,000 buyers get filled and the price comes down from the 30 cent max limit up, I left my computer for 5 minutes and this happened. if the price is locked max up you can wait till it comes down sometime during the night (2AM)? and get in. by 9:30 chicago time when the market officially opens the price will gap up 15 points, then run to the next limit up in 10 minutes and stay there all day this is my observation and opinion and is not financial advice. also I might add this market scares me. if I got anything wrong please tell me, if you make alot of money off of this GIVE ME SOME
I too have been watching this wheat make this unbelievable run, but I have not joined the frenzy as this market goes not only up but down in seconds. True it has finished limit up for 4 consecutive days, but there have some pretty violent swings. I have read from a pretty reliable source that there are a lot of forced liquidations of shorts which is why wheat comes off for a bit.... All I'm saying is be careful. Plan for a worse case scenario (from limit up to limit down in seconds) and know what your risking. Also, FYI - CME Group is raising the daily trading limit from 30 cents to 40 cents next week.
damn straight about the violent swings you get the first 5 minutes of a berzerk trading day and that is the day, I said it scared me. oh, and also you could lose EVERYTHING. and um.. I don't own any look for my next post "tips on Russian roulette" and "dancing on land mines"
If you want to short the ag complex and don't want to deal with the volatility and leverage of futures try DBA.