OptionEye...Sept. 13th

[ShelladyOptions]

Corn is holding in.

Yesterday's price action was pretty healthy considering all the influences not to mention the USDA report. What I think it did was to lock ourselves into a sideways range here looking for weather direction and extend the wait to next months figures.

I want to keep an eye on any dollar strength as well as any specific fund movements to try and navigate the daily price action.

The money flows over the last few days have been surprisingly muted. I am chalking that up to the fact that those in control of the  money are fixed on the debacle in Europe.

Happy hunting.

Scott

[marketeye]

Scott,

Some folks are talking about the stock market being too quiet. What's your take? Is this the calm before the storm? I mean how much bad news needs to be released; France banks show problems, Germany turns its back on its financially-troubled neighbors, BoA announces huge layoffs, Greece nears collapse, and on-and-on....

Mike

[ShelladyOptions]

Yes MarketEye it is very quiet. Interest rates aren't moving and the trading community both here and abroad is waiting for the bad news to really get going. If you have a position on it is likely that you have already exited the market or are about to do so. There are not a lot of hedge funds or proprietary houses that are looking to put capital to work at this time. As the old saying goes 'this is a market that you would like to expect the return OF your investment not ON your investment.

What we really need to get the trading community going is a trend of some sort. The market is very schizophrenic. Just look at a chart of the VIX (volatility index) over the last three months.

Scott

[nwobcw]

   Some economists on the business shows are predicting parity between the euro and dollar within 1-2 years.  With the ratio now at 1.36 does that mean a 36% fall in grain prices goes with it?