Grian Markets Trend up continues!

After the rather steep price break the grains had seen the last week or so; the grains managed a big bounce today lead by corn up over 20 and beans nearly 40 cents.

Perhaps buying the breaks is still the way to go?  For speculators I would say yes..........for producers who sold profitable levels earlier but now view those as bad sales.  Keep in mind the risk one has with various replacement strategies.

A couple charts to show the price action the past couple of days.

Also for risk management purpose keep history in mind.  In June of 2010 corn traded in the low 3.00 range.  Today it is about 4.00 a bushel higher.

In June 2008 corn traded over 8.00 in some contracts; while 6 months later in Dec of 2008 it traded down under 3.00.


When those markets made their tops and bottoms most everyone thought they would keep going......eventually everyone got on the same page and we ran out of players willing to continue to sell or buy.

KC March
Tested the 61.8 retrace and bounce very well. Still has a an uptrend in place

March Corn
Followed yesterday’s Doji with a nice big bar as it moved into new highs. Remains overbought but hard to see much negative with new highs happening regularly. The amount of Doji’s and the sign they leave is a little concerning