Croker-Rhyne Co., Inc.

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June 7, 2006

I am still firmly recommending buying either futures or call options in every one of these four major USA crops...If you are not on them, and "thinking about it" or "waiting to see what happens", I suggest you get something done now...To me, they all looked poised to bolt higher, and the fact they all look that way may be something of an indicator in itself...This is not to say they can't go down, but right now, I love the way every one of them is developing...
Give me a call if you are interested...or want to add to your position...
And one more...
Though this is the first time I have written about it in months, a handful of you know how bullish I am on the bond market. Bonds usually turn up BEFORE the Fed is done raising short term rates. Ironically, everything they have done for the past two years...the effects of which are kicking in what sets up the bullish upturn while everyone is still saying "rates gotta go higher"....In 9 of the last 10 years, Bonds have made a bullish turn between late March and early May, every one of which was at least a 10 point move....I think there is tremendous leverage in the September and December call options here...But nobody wants this trade.
I'm a buyer...Right now when the number one headline everywhere is INFLATION...which loudly infers you should be selling bonds, not buying them...I think they go up at least 10-12 points from here...and as you'll note on the chart below, they usually do it fairly quickly.
On May 1st I created this chart showing all the spring upturns during the past 10 years ...Then added the rough update on June 1st after the May 12th lows...
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