September 3, 2020
Soybean Market is Heating Up?
Soybeans closed into new 7 month highs again today…In classic bull market fashion, during roughly the past month, we now have a string of 15 higher closes and 4 lower closes…totaling about $1.00 on the upside. I CONTINUE TO BELIEVE THIS MOVE IS JUST GETTING STARTED.
It has been so long since Soybeans really did anything that I believe most people have totally forgotten what this market CAN do…which is occasionally knock out $3-$5 moves in no time at all.
Soybeans actually bottomed almost 5 months ago, and have steadily been grinding higher, and STILL, I have yet to see the first analyst anywhere even remotely consider the idea that this market should be bought for a major bull move. I know there must be somebody other than me saying so, but I haven’t seen them…And in fact, just about everything I have seen and heard, again, for MONTHS, and CONTINUE to hear, is “Sell Soybeans, Wheat, Corn and Cotton”, in spite of the fact that all four of them have, I believe, conclusively given us evidence of MAJOR bottoms.
I might be dead wrong, but in my mind, Soybeans look like they are truly lifting off…and I continue to recommend GOING WITH WHAT IT LOOKS LIKE THEY ARE DOING…Per my opening statement, that people have forgotten what Soybeans can do, my own personal view is that we have an honest shot of seeing this market trade in the teens.
I strongly recommend that you take a hard look at the strategy outlined below…and do SOMETHING with this idea…
How long do you have to be around this stuff to understand that when something IS moving, and all of the supposed “experts” are almost unanimously telling you, “Don’t buy it!”, to KNOW that BUYING IS exactly what you should be doing? In the same vein, you must also KNOW that if Soybeans were going to stop here, every single one of those naysayers would be screaming, “Buy!”. I mean, REALLY, that IS how this GAME works…How many times do you have to see this scenario and not KNOW what to do with it?
If you think this makes sense, don’t just sit there and keep watching it happen…Give me a call and let’s talk about it.
And just to be clear…This is all about Soybeans, which appear to be leading the charge right now…but I continue to recommend owning Corn, Cotton, Wheat, Cattle and Hogs as well.
Lots of ways to do this guys…Call me an find out…
All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, 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: Soybeans, Wheat, Corn, Cotton, Cattle, Hogs.