Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris hails from the land o' lakes, beer, bratwurst, and Bucky Badger. She traded in her cheese hat for a propeller beanie and has never looked back. She has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • Intraday Market Notes: Drought Trade Is Unwinding -- October 15 0 comments
    Oct 15, 2012 4:05 PM | about stocks: JJA, GRU, AGA

    3:50 pm ET: Today's mini rally was sparked by a better than expected consuming spending report which gave many retailers a much needed boost to their sagging stock charts. It's nice to see some green but in this market fraught with a lot of uncertainty, it's difficult to make any sort of prediction more than five minutes into the future. There's still the bulk of third quarter earnings to contend with not to mention the uncertainty surrounding the presidential election, the fiscal cliff, the jobs recovery, the Eurozone debt crisis, and the slowdown in global economic growth. I do think, though, that tomorrow's trading action will be muted ahead of the second presidential debate scheduled for tomorrow night. A clear winner in that contest will likely determine who will be elected which could have a major impact on market direction. Should the debate result in a tie, then I would expect the market to continue on in current fashion. We'll know soon enough.

    There's just not much to report. Two soft commodity funds--agriculture (NYSEARCA:JJA) and grains (NYSEARCA:GRU)--broke through support levels as the drought rally unwinds. These funds jumped as much as 45% over their early June values as the drought intensified. Although both issues have fallen off their highs, they still have a long ways to go to return to their previous levels. There are options on the GRU but they are very thinly traded. If you're looking to play the short side with stocks, you could try to short these individual issues or buy the double-short agricultural fund (NYSEARCA:AGA). This fund appears to be turning around and is up 3% today. Should you decide to jump on this trade, please be aware of the perils of holding leveraged funds. (See this article for the pitfalls of holding leveraged etfs.)

    Note to Subscribers: There are no new entries.

    Stocks: JJA, GRU, AGA
Back To Dr. Kris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Governtainment: The Ace Hotel in LA is offering "a no-holds-barred evening of music, laughs & astute political analysis" Monday nite.
    1 day ago
  • De-ranged: Livestock etn $COW breaking recent support to hit another all time low (post 2007 ipo).
    4 days ago
  • Risk-on rules! Breaking out to new yearly highs--Tech related etfs $XLK $ROBO $PNQI $FDN $SOCL $SMH $SOXX; Med devices $IHI, Gaming $BJK.
    5 days ago
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.