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Yes, grains look very oversold and may have possibly bottomed with
todays action. My customers have been in bullish and quasi bullish
positions for a while. We started by entering bull call spreads with
two naked legs, that is buying one Dec 2.50 call while selling 3 2.90
calls at a credit of 3-4 cents. After the first rally we liquidated our
long calls for 29 cents or more and bought futures based on one futures
for every two long calls liquidated. We added additional future
contracts on as the market dropped. Over the last few swings we have
sold on rallies and bought back our positions on dips. We sold fridays
rally and bought todays dip. In the meantime we have rolled our short
calls down to 260/270 in a ratio that doesn't exceed our number of long
positions.
Paul B
Warren Goldstein wrote:
>
> Hi RTs,
>
> I've got a major buy signal in Wheat, Corn and Soybeans.
>
> It looks to me like they will all rally sharply for a few weeks, correct for
> a week or 2, then up into the week after Labor Day.
>
> I see potential in Nov. Beans to the 705-715 zone.
>
> I'm accumulating here in the 580 zone, and expect to buy the rest on
> Wednesday morning.
>
> Stop at 569 3/4.
>
> Comments welcome,
>
> Warren
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