I hear people talk about a huge correction in grains. Falling dollars, bonds sky-rocking, inflation... etc all have made grains go higher and higher, not to mention without any pullback. Grains used to be the way farmers hedge their profits, but now all the institutionsare using them as part of their portfolios. One of guys told me that the run-up in Dec 2007 was from institutions adding Grains into their portfolios to 'show off' to their customers. The same reason goes to the current run since the beginning of 2008.
While it's very dangerous to pick a top, but I'm expecting a huge correction, I mean 10% minimum. Remember, topping patterns usually look like interveted 'V' shape whereas bottoms look rounded.
Sunday, January 13, 2008
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