General Ag Commentary
The Ag markets in general are close to the highs of the last twelve months. The bean, meal, and oil spreads are all inverted as well as corn. This all makes sense given the tight domestic carry. In general, however, today’s action was of some concern. A large move up that ultimately failed. Is the market indicating further bullish input is needed to push prices higher? My suggestion is exercise caution into next weeks USDA report. If long probably not the time to add. Use stops, have a profit taking plan.
Equities
It is important to note that the equity markets are putting out daily short term sells. This does not mean the highs are in. However, in my opinion it does mean exercise caution. It is my thoughts the Biden monetary policy is suspect at best. The new monetary thought is that we will have low rates forever. This may prove to be a stretch. If the rates start to rise, it is my belief the financial sector, stocks specifically will find further gains difficult.
Quantify your risk.
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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