Riding The Wheat Wave

It would seem that the road ahead is going to be paved with wheat. The past few weeks, I’ve been riding the continuation pattern of wheat that has lasted for the past few months. I’m going to keep on going with it. I am set as of right now to go long on wheat on Monday morning. This is mainly because the price is sitting right near the low of 850. This low has withstood since mid July. However, the big risk that I will be running is the huge fall in wheat prices, which will be expected should the pattern hold for too long. I do not expect this fall to come for at least another few weeks. I believe that the fall in prices will come from a similar reasoning behind the significant fall off in price in soybeans. That reason comes from the closing of positions of investment funds. In order to protect myself, I will be setting limit trades so as to set a stop loss if prices fall below 830 (which gives me a space of about 20 below the low of 850.

Leave a Reply

Your email address will not be published. Required fields are marked *