The DeCarley Perspective Trading Newsletter

Buying Opportunity in Corn Futures?

Corn Futures Buy Recommendation by DeCarley Trading

 

****There is substantial risk of loss in trading futures and options.**

****Past performance is not indicative of future results**


On the radar:

* Specs are holding record net short positions at a time in which we aren't sure when the next USDA report will be released.  This could  be a good time for them to start covering!  We are corn bulls on this dip.

Corn futures might be setting up for the harvest lows

"Everyone" is bearish corn, but it might be time to buy.

Corn prices have been in a sharp downtrend, but we can't help but feel like all of the "bad" news is out.  The market, and traders, have already come to terms with the fact that we are sitting on a bumper crop in what has been a nearly perfect growing season.  However, with the short corn trade overloaded we suspect there aren't many traders left to sell....but it might not take much to entice them to lock in profits.

Similarly, the harvest lows are due in October...and here we are.  In our view, the risk is to the upside; hopefully the bears realize this as well and begin to cover what are record breaking net short positions. 

In August, we briefly mentioned that a dip in December corn under $4.40 would trigger our interest.  We've been patiently waiting for prices to come to us.  Unfortunately, they've move lower on relatively low volatility so our "go to strategy" of selling puts doesn't seem to be the most efficient means of speculation.  We like the idea of going long futures contracts at a nibble pace with the idea of adding at lower prices if they are seen. 

For most of you, it probably makes sense to use the mini corn futures simply because it leaves plenty of margin for dollar cost averaging and gives you the ability to hold a long position for a long period of time with mitigated risk (and stress). 

We'll consider adding on should prices decline to levels closer to $4.00.  Our initial upside target will be $4.75 but we cannot rule out a run into the $4.95 area.

Let us know if you would like us to put one on for you, or if you have any questions.

If you are enjoying this trial, click here to open a trading account to work with DeCarley Trading and/or use the state of the art futures and options trading platforms available to our brokerage clients.**


DeCarley Trading
Twitter:@carleygarner
This email address is being protected from spambots. You need JavaScript enabled to view it.
1-866-790-TRADE(8723
www.DeCarleyTrading.com
www.ATradersFirstBookonCommodities.com


Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data.

**Seasonality is already factored into current prices, any references to such does not indicate future market action.


**There is substantial risk of loss in trading futures and options.**

Share

DeCarley Trading on Twitter

Carley Garner Trading Books

  • Higher Probability Commodity Trading, new Carley Garner book

    Higher Probability Commodity Trading, new Carley Garner book

    According to Phil Flynn, Fox Business News contributor, this is Carley Garner's "masterpiece"! Order from Amazon today! "A great read for both beginner and advanced commodity traders. Carley nails the seemingly impossible task of leveling the playing field by imparting vital concepts in easy to digest bites ...she doesn't leave out the harsh realities and heartbreak many overzealous speculators face." -- JON NAJARIAN, co-founder NajarianFamilyOffice.com "I love the book... it's an MBA in trading for the
    Read More
  • Commodity Options the Book

    Commodity Options the Book

    It isn't free, but it's close! If this book saves you 2 ticks, you've recouped your investment.   Commodities are hot, as Jim Rogers would say.  Stagnant stocks and the massive bull rally in raw commodities have lured much of the attention away from Wall Street and toward down-town Chicago.  It is difficult to turn on the television or open the newspaper without being reminded of the impact that commodity prices have on our daily lives.   Traders
    Read More
  • A Trader's First Book on Commodities

    A Trader's First Book on Commodities

    The Simple, Practical, 100% Useful How-To Guide for New Commodities Traders   Before you trade commodities, you'll need significant practical knowledge of the associated risks and market characteristics. That's where this book comes in. You won't find boring theory or bewilderingly complex trading strategies here. Instead, you will find specific guidance on accessing commodity markets cost-effectively, avoiding common beginners' mistakes, and improving the odds of successful trades. Drawing on her extensive experience teaching traders, Garner shows how to
    Read More
  • Currency Trading in the FOREX and Futures Markets

    Currency Trading in the FOREX and Futures Markets

    Get a copy of Carley Garner's latest book at Amazon.com, or any major outlet! "Once again, Carley Garner demonstrates her ability to boil down complex concepts for individual traders. Trading Currencies in the FOREX and Futures Market will put budding currency traders ahead of the curve with its unique blend of the basics and some refreshingly unexpected material." ~ Karris Golden, Traders Press® "Carley is a smart trader and broker; she understands the markets and the importance of
    Read More

Newsletter Trial