Nothing can slow the equity markets, Impeachment, Debt, Earnings, it doesn't matter markets want to go higher. It's hard to argue with the Tape, FED and the money flowing in to buy. We all know that there will be another meltdown, but we don't know when. I will say that there will be a 300-500 point down day in the next week which is probably a buying opportunity.
Complacency is a very dangerous emotion in all markets, we have never seen so much in the equities. Of course, the fact that there is no place else to invest it's forcing every investor into the U.S. equity markets because there is no place else to go. Look for the rally to continue until it doesn't.
Grains had a solid week with Beans and Wheat breaking out to the upside. Corn consolidated near a breakout spot and should break to the upside soon. Everyone is waiting for the January USDA report which of course we think is as worthless as those things on a bull. Grains are headed higher for now, it's that simple.
You can see how much we watch the news with Cattle on Feed last Friday, I didn't even mention it on last week’s report. I was shocked when I was asked about it on Monday on RFD TV. Fats and Feeders held support and rallied; Hogs finally broke out to the upside. We are expecting these rallies to continue.
The Dollar is forming a bearish pattern after attempting to rally last week. Gold is breaking out and has turned bullish which should continue and test the recent highs. Crude like Gold is running and should test the Drone Bombing highs of 63. As much as we hate Crude, we are long and have no intentions of selling anytime soon.
The Bottom Line: All markets are quiet, but we are seeing some solid price action. There is nothing that we can see now that will change the current price action. We know there will be sell offs but for now across the board dips should be bought
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2019-12-26 Bubba's AG Weekly Report
CORN - Continues the slow churn near resistance which indicates to us that Corn will breakout to the upside. Volume is almost zero which is expected this this time of year under the current conditions. We are still looking for higher prices. We are long with the algorithm
Hedge Recommendation: Hedged and Selling Weekly Iron Condors
Position: Long 50% - Will add at 385
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BEANS - Breaking out to the upside on reasonable volume, much higher than Corn. Trade deal or not we are looking for higher prices and the rally to continue. Our next target is 970 and support is 940. We are looking for a big rally and a big first quarter. The algorithms are long as we are.
Hedge Recommendation: Hedged and Selling weekly Put Spreads
Position: Long 50% - Will add at 9.40
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WHEAT - Held support perfectly and has rallied back towards the tops. We are expecting new highs in Wheat and a much bigger rally. For now, volume is light but should pick up early in the first quarter. The rally should continue, and We expect a run at new highs, we are long with the algorithm
Hedge Recommendation: Hedged and Selling Weekly Iron Condors
Position: Long 200% - Will sell Half at 5.55
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DOLLAR - Failed at secondary resistance and is confirming a bearish pattern. The FED finally wore down the Dollar bulls and could be headed much lower. Although we like the Dollar long term, for now the bearish pattern plus the short algorithms will keep us short. The algorithms turned short as did we.
Hedge Recommendation: Hedge dollars against cost
Position: Short 100% - Added at 97.30
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CRUDE - Is once again pushing against resistance, the 63 highs are in play, although we don't like Crude new highs look like they are coming, and we are long. Algorithms are long as are we
Hedge Recommendation: No Hedge
Position: Long 50% - Staying long, not adding
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S+P - New high after new high, there appears to be no stopping the S+P. The SPY ETF based on the S+P has had the longest winning streak in its history. There will be a selloff in the next few days which will be a buying opportunity. For now, the S+P goes higher. We are long with the Algorithm
Hedge Recommendation: Portfolios should be Hedged
Position: Long 50% - Holding
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GOLD - As we have warned the last couple of weeks, although we short Gold the pattern was turning more bullish. We have reversed and are long Gold. We should see a test of the recent highs; the pattern is fairly clear. We are short with the algorithm.
Hedge Recommendation: None
Position: Long 100% - Will add at 1500
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FEEDERS - As expected Feeders bounced perfectly from support and the rally is on. We are expecting new highs at 150 and higher and expect this rally to continue. There is some resistance at 147 and 148, once through there the ride should be smooth to new highs. We are long with the Algorithm
Hedge Recommendation: Hedged
Position: Long 100% - Will Sell half at 150
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FATS - Like Feeders, Fats held support and rallied nicely. We are expecting a run at 130 and higher. The holiday volume is very light, but prices are moving up and should continue. Algorithm long as are we.
Hedge Recommendation: Hedged
Position: Long 150% - Will add at 124
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HOGS - Have finally broken and closed above the 70 level for February Hogs. We have reversed to long and now expect an extended rally. It took a long time for the breakout to come and now we see a big rally. Algorithms are long as are we
Hedge Recommendation: Hedged
Position: Long 100% - Looking for a big rally
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