August 30, 2020
Corn, Cotton, Soybeans & Wheat ALL breaking out?
Last week all four row crops closed higher (some STRONGLY so), into new three to six month highs…Even so, I STILL see analyst after analyst STILL preaching the bearish case…which, frankly, is exactly what I WANT to hear…
I THINK ALL OF THESE MARKETS ARE BREAKING OUT, AND CONTINUE TO BELIEVE THAT TODAY’S FED SPONSORED ENVIRONMENT OF FLOODING THE MARKETS WITH CASH COULD LEAD TO SHARPLY HIGHER PRICES IN EVERY ONE OF THEM. Obviously, this is my opinion and I might be dead, dead wrong…which can lose you money…but this IS my perspective and I am personally buying Corn, Wheat, Cotton and Soybeans with no idea as to how high I might be trying to ride them.
I continue to recommend buying calls in all four markets…
And again, IN ALL FOUR OF THESE MARKETS, IT SEEMS THAT THE ANALYTIC COMMUNITY IS STILL BEARISH...Still talking about the “big supplies out there” (which is a KNOWN in the markets) and “potential Covid reduced demand,” which I think is just exactly BACKWARDS.
Bottom line though…They all appear to be on the move…and I DO think they can move just as big as some other bull markets we’ve already seen this year…AND I AM GOING WITH THEM.
If what I’ve been banging the table about makes sense to you, I urge you to do something about it…to not just watch this potentially happen…and certainly not to wait another week to do so…As I’ve said several times lately, I don’t think I’ve EVER seen opportunities like these in my 40 years doing this crazy ass job…As always, just because I strongly believe this to be the case does NOT mean I will be right.
Buying a call in all four markets currently costs about $4127…As I keep pointing out, just do the math yourself for what happens if NONE of them go up from here (you lose)…or if just one of them goes…or two…or three…or all four…Even if they just make moderate moves. DO THE MATH YOURSELF.
Call me if you want to get on board…preferably tomorrow…There IS a little weather working (maybe) in the Midwest…which can be explosive. Don’t know if it will be…but it sure as hell can…as was the case a bit last week that did, for one, see Soybeans close 45 cents($2250 per futures contract) higher.
All option prices in this newsletter include all fees and commissions. 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 four