Why we like long wheat:
1. If you’re following along you know that we have been positive wheat futures and even took a stab at long HRW wheat but were stopped out ~15¢ higher than we are currently trading.
2. Commercials hold a massive long, and specs are relatively short this market, very supportive setup.
3. Global stocks just are not that abundant. On a world stocks/use basis they’re tightest since 14/15, and on a World Ex China basis they’re tightest since 07/08.
4. Technically this market has clear support at $5.20 on a most active continuation chart. Our exit is nearby, our upside target is not.
Long Chicago SRW Recommendation
Entry: Buy 2 July SRW Wheat Futures at the market
Alternative Entry: The true buy signal would be a close over yesterday’s high, work 537 1/4 SCO to buy.
Target: $6.00 – $6.20
Risk Exit: Exit on a close under $5.20.
Graphic:
Click here to return to BIS Speculative Newsletter Home Page
Click here to read the re-introduction of the BIS Speculative Newsletter
Disclaimer: The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Brock Investor Services, Inc believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice is based on the opinion of Brock Investor Services, Inc and reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. There is a risk of losses as well as profits when trading futures and options. This brief statement does not disclose all the risk aspects of derivative trading, therefore careful study carrying FCM’s Risk Disclosure is strongly encouraged before the recipient of this email trades.