Tuesday, March 4, 2008

Grain correction on the horizon?

This year's best performing ETFs have been all commodities related (DBA, USG, USO, GLD, SLV. Wheat and soy have been trading at parabolic levels and it sure smells like a bubble is near. I am no hero to call a top here, the demand and supply is SOLID and I still long POT and RJA but I am starting to get worry. But then again, I just have to look at how many times my local chinese restaurant have "redesigned" their menus along with increasing their price to see that this commodity boom is real.

Financials are again the soft spot as more bad news come from TMA. The market did handle this bit of news pretty well reversing all of todays gains. However I expect more blood to shed, I am sure the DOW will way to 1200 this month.

Long Positions: MSFT (waiting for a good exit point.. sigh), POT, RJA, PAL
Bearish Position: Drys [via put options] , SKF

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