Seeking Alpha

Dr. Kris'  Instablog

Dr. Kris
Send Message
Dr. Kris 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 satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
My company:
Stock Market Cook Book
My blog:
Stock Market Cook Book
  • Intraday Market Notes -- July 16 0 comments
    Jul 16, 2012 2:58 PM | about stocks: CORN, GRU

    2:40 pm ET: The market is taking a mini-vacay today as traders await tomorrow's face-off between Fed Chairman Ben Bernanke and Congress. Not that Big Ben will likely say anything earth-shattering but hey, hope springs eternal.

    Trading is mixed today with some rather atypical action seen between Treasuries and investment grade bonds which are moving up and the US dollar which is moving down. Is this a "risk-on" or a "risk-off" trade? In a risk-on environment, stocks and commodities move up while in a risk-off environment they do the reverse. Today's market action is sideways which means that the market doesn't have the answer, either. Again, confusion may be the new normal until the Fed chairman sings.

    In other news, corn and grain etfs take another giant leap. The corn fund (NYSEARCA:CORN) jumped 4% today (which is a huge move in the commodity space) and is close to testing its previous high at $50.50. The grain fund (NYSEARCA:GRU) broke $8 resistance taking out last year's high. It appears that while the adverse weather is delighting fund shareholders, the general public could start feeling the pinch at the register via higher grocery prices especially on cattle which is chiefly corn fed. Higher food costs could put a dent in discretionary purchases, possibly putting a noticeable crimp in the margins of apparel and jewelry retailers. Of course, we won't know whether this comes to pass until either the next earnings report or the one after that.

    Stocks: CORN, GRU
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

  • Miners ready to take a break? Topping tail seen in $XME indicates buying pressure drying up.
    about 13 hours ago
  • RIP: Just found out that long-time voice of SNL, Don Pardo, passed away at 96. A truly distinctive voice.
    about 15 hours ago
  • A European vacay just got cheaper: USD $UUP popping above $21.80; Brit pound $FXB & euro $FXE breaking major support.
    about 15 hours ago
More »

Latest Comments


Posts by Themes
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.