Alert: corn and Ags get crushed after USDA report.
Let’s play for a corrective bounce with CORN …
I recommended recently we add a position in JJC to play for a corrective bounce in copper. Well, today’s new recommendation is based on a similar idea: that the downside for corn prices has become overdone in the near-term. Basically, we might be able to call a short-term bottom here on today’s sell off if my technical and sentiment analysis proves accurate.
Note: the reason for the sharp decline in corn (and soybeans and wheat) today is that a USDA report showed a much larger level of corn stocks than had been anticipated. But considering the extent of the sell-off in September, I’m not sure if this report can provide much additional pressure in the short-term.
Let’s add CORN (Teucrium Corn Fund) as a short-term play to capture a sharp bounce in corn prices. I am recommending a tight stop-loss on this position since it amounts to bottom-calling based on technical analysis .
CORN (Last Price: $40.09)
Buy shares of Teucrium Corn Fund, symbol CORN, at the market. Then place an order to SELL ALL your shares of Teucrium Corn Fund, symbol CORN, at $37.65, STOP. This order is good till cancelled.