August 27, 2020
One more time…I believe that the same INFLATIONRY FORCE seen below…an unprecedented tsunami/avalanche of Fed provided money…that has already driven Stocks, Precious Metals, Copper and Lumber SHARPLY higher is beginning to enter, and accelerate, in the agricultural sector…and we are starting to see it on almost a daily (and certainly, weekly) basis…
Just plain English: I find it almost impossible to imagine that funds could possibly be EXITING the Ags...quite the contrary…I can only believe that the same buying that has propelled all of those other asset classes MUST be headed towards also owning agriculture, which I see is the most undervalued asset sector on the planet…with one very direct result being HIGHER FUTURES MARKETS PRICES.
This ain’t small time traders like you and me, or even some bigtime honcho who’s running a fund…The biggest traders in the markets today are computer driven econometric models…and I will say it again: I think they can ONLY be on the buy side now. Nothing else makes sense to me…Let every analyst out the keep talking about “supply this year compared to last year” or whatever else it is that MONTHS after the lows were made in so many markets STILL has them essentially bearish.
I think all of these markets are going up, and quite frankly, under the present circumstances, I have no idea how high any of these markets might go…All I can go on is what I’ve seen…Some ENORMOUS moves already…and assume that the same is certainly possible in any other market that gets the machines and the money behind it…As I’ve said for decades, none of these values are “real” and if you think there is some scientific equation to determine how high, or low, any market can go, you are mistaken. And today? More so than ever.
I CONTINUE TO RECOMMEND OWNING ALL OF THESE MARKETS (OR AS MANY AS YOU CAN) AS I BELIEVE THEY ARE ALL GOING BIG ON THE UPSIDE…And as I keep reminding you, I have no idea which will go first, or biggest…or at all…
Today’s leader was Soybeans….Up 16 cents or $800 per futures contract…
Next was Wheat…up 12 cents or $600 per futures contract…
Tired…so I’ll just leave it with these for row crops…but still buying Cattle and Hogs as well…
BUYING A CALL IN ALL FOUR CROPS AS A “UNIT” WOULD COST $3977…You know how the math works if none, or some, or all of them go…
I may be dead, dead wrong. This may be nothing but a total loser but my opinion is that this has the potential to become a GIANT trade…and how I wish that those of you who are still on the sidelines would GET ON THIS…WITH SOMETHING.
Really…If you see this…DO SOMETHING ABOUT IT…Pick up the phone…
All option prices in this newsletter include all fees and commissions. Unless otherwise state, all charts are by Aspen Graphics
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: All of them