Roy Smith's new column (full story) points out that a rare, second "dead cat bounce" has occured in the soybeans. The ten days higher rule was met on Tuesday.
Problem is, the bounce strategy doesn't give clear signals as for when to pull the trigger on sales. Three things to keep in mind, Roy points out:
1. The bounce seldom lasts past December 31. That gives three and a half weeks to make the decision.
2. Watch for worsening basis as a sign that demand is starting to diminish. So far, it's not happening.
3. In high price years like this one, a dollar a bushel over the harvest low has been a good target for selling.
Thoughts on the bean bounce?
John
