Phil Flynn: Be Careful Of What You Wish For

The Federal Reserve wanted inflation and inflation is what they got! The Feds plan to restore activity to the economy by printing money and inspiring people to spend may have hit what you might call a reality check. While after a very weak jobs report showing that the economy lost 9500 jobs increasing the odds of quantitative easing, a report released simultaneously from the Department of Agriculture shows the perils of this policy. The USDA dramatically lowered its corn stocks to the lowest level in 14 years.

Corn shot up to the daily price limit sending shockwaves across the grain complex and the stock market as well. The Wall street Journal reported that, “A steep cut to U.S. corn harvest estimates triggered a rash of trades by investors who bet that tighter corn supplies could keep rippling through the stock market.“ “Analysts called the U.S. Department of Agriculture report a shocker. It shaved a record 6.7 bushels per acre from last month's corn yield estimate, pushing the figures well below.......Read the entire article.


How to Spot Winning Trades in Corn

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USO : Oil's New Downtrend ?

One of my favorite sites is The ETF Corner. Great analysis, with easy to understand charts using simple channnels. I never make my daily trade set ups without a quick visit to The ETF Corner. Here is their post from Friday on the USO and crude oil......

If USO does not manage to break above $38.5 soon, I believe we will likely see USO trading down within this new red downtrend.