Volatility has returned to normal as open interest continues to fall and cert stocks have grown over 700k with 620k in stock and 90k awaiting review. We expect a bearish to neutral USDA S&D report tomorrow.
Technically, we have an island reversal on the chart where many of the panic short covering longs are stranded with today's gap above the market. The next downside target in K'08 would be a small gap we made on the rally up between 75.20 and 75.12. Attached a chart of the volatile Z'08 contract on page 2 to give our ideas of some possible scenarios on this short term correction.
Nearby looks like we will continue to test the downside as stocks closed very weak today and there seems to be a lack of hedge fund demand.
marketing@alchempro.com
