We had a gorgeous day for our short position, even though we had relatively low volume due to it being New Year's Eve day. We closed with a lower high and a lower low than yesterday. We also closed under the previous Support/Resistance level that provided support for the past 2 candles, but not today.
And Stochastics are still in the mid-range while the BB/KC Squeeze is about to break out. Things are looking very constructive as of today's Close.
Corn also closed with bearish indications, which lends some indirect support to a short position in Wheat.
There are only 2 grain related USDA reports due out next week. They are both at 3pm ET on Monday 1/3/2022:
- Fats & Oils: Oilseed Crushings, Production, Consumption and Stocks
- Grain Crushings and Co-Products Production
I'm told by respected Ag trader Richard Anderson that usually neither are market moving reports. So, I'll be holding our position through the news release. You can see the schedule here:
If you noticed in yesterday's post I was also short Soybeans, I covered that position at the close today at 1340. Net is 1364 1/2 - 1340 = 24 1/5 points * $10/pt = $245 in the Soybean trade. The full contract would have been 24.5 * $50/pt = $1,225.
I closed it because:
- I'm over-weighted short grains to hold over the weekend.
- March Soybeans could not close below the 8ema yesterday or today.
- Taking the profit is a hedge against Wheat gapping up at the next market open.
Nothing to do now but wait until next year :)
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