Not sure if it’s the fact that Obama won the debate last night or the fact that earnings continue to fall below expectations but it appears that the market is quickly moving back to a risk off environment moving back to capital preservation mode.
Could the dog be waking up? The overnight markets are showing signs of life again as things seem to be making an attempt of coming back to life for the bulls. The beans are trading 15-20 higher, meal has gained $4-5, oil gained 25-30, corn is up 4-5 and wheat is up 6-7.
The overnight markets have made a feeble attempt of recovering some of the devastating losses that have occurred in the past 2 trading session. The beans as of 8:00Cst are hovering near 10 cents higher in the session, meal has gained $3, oil increased by 40-50 points, corn increased by 6-8 and wheat has gained 8-10. Its Tuesday and the markets have been punished over the past few sessions, don’t be too quick to jump back on the bull wagon as there has been extreme technical damage and the beans have a gap that should be filled down to 1478 that dates back to June.
Welcome to Wednesday’s Morning Coffee Break – U.S. markets start the third session of the week after two straight days of uneven trading. One positive take away from yesterday’s session was the break in the final hour sell off that has persists the last few weeks.
Welcome to Tuesday’s Morning Coffee Break – U.S markets started off the 4th quarter with strong trading intraday gains, although the Dow Jones and S&P 500 indexes did close solidly in the green the markets did exhibit the most recent trend off lately of selling off into the close. U.S. indexes closed well off their intraday highs with the NASDAQ falling into negative. The averages ended the day well off
The overnight session gives a bit for everyone as the market continues to digest the past USDA report. The corn market is the market back on the front page as supplies remain tight. The beans are also tight but not as tight as many had assumed and wheat is also shrinking on the supply side. The bottom line is that the USDA once again was able to absorb some early harvest into the old crop figures and as long as there is early harvest this pattern seems to work. The question is what do they do when there isn’t an early harvest? This is a debate for another time as it doesn’t matter today.
