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Senior Contributor

OptionEye Morning Macro Outlook June 25th

Good morning.

 

Sometimes you have a feeling....like something in your stomach and you feel strongly about it. It happens to me a lot but as of late, less and less. I mean, there is a serious lack of market emotion. Its like we are morphine just going through the motions. I think it has a lot to do witht he Central Bank intervention absolutely killing volatility and making the markets contrived but I ask myself, how does this affect me in the agriculture sector?

 

Well, the trickle down effect has worked and I feel like these markets are sleepwalking. Maybe I am chicken little but it just seems like everyone thinks there is no more risk in the world. I don't buy it. I am staying vigilant. You should too.

 

Overnight corn is down 2, beans are up 2 and wheat is down 3. US corn reserves are seen to be rising and soybeans in decline. Guess that pretty much explains that. Wheat traded to a 4 month low.

 

Stocks are a little bit better this morning after yesterday's selloff. Gold is down $4.82 to $1313.58. Oil is up .37 cents to $106.40 with no relief in sight.

 

The dollar is lower by .04 to 80.28. The 10 year yield is dropping and stands at 2.56%.

 

Remember, risk is still there it's just hiding in the weeds.

 

 

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Senior Contributor

Re: OptionEye Morning Macro Outlook June 25th

Maybe no volatility is the norm and we have been seeing the not normal trading the last number of years.

 

Several years ago a trader at a grain elevator told me the alarms used to go off if there was a 2 cent move and 'now' (when he was talking to me) they did not get excitd unless there was a 10 cent move.

 

Maybe we have gone back to the way it used to be.

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Veteran Advisor

Re: OptionEye Morning Macro Outlook June 25th

OptionEye,

 

So, I'm hearing that if you want to know how volatile Monday's USDA Report could be, look towards positions being cemented, right now, in the options market. Is this a good indicator? And, can you give us the update as to what is happening in the options market? What's the action telling you?

 

Thanks,

 

Mike

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