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Bower Trading Market Strategy Report: The Lull Before the Storm

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Bower Trading Market Strategy Report: The Lull Before the Storm

Jim Bower

If you are looking for dynamic market action, you are not going to find it in the agricultural markets, says Jim Bower, with Bower Trading, “The commodity index is down at levels we have not seen for 6 to 8 months.”  He added that much of the big speculative funds are in the stock market at the present time and not in commodities.

Bower states that it would not take much, either on the production side or the demand side, to generate some market action, “The funds are heavily short wheat and also short the corn market. While they have been long soybeans, they have reduced those positions significantly. There is fuel for a fire.” He urged producers and investors to keep a close watch on the news,  especially the weather, “Weather is the one thing that can change the supply side  very very quickly.”

Bower remains a fan of the sell and defend market strategy, “That involves selling the cash and defending it with some kind of strategy on paper including written options or bull spreads.”

For more information, contact Bower Trading at 800-533-8045 or www.bowertrading.com.

This material has been prepared by a sales or trading employee or agent of Bower Trading Inc and is, or is in the nature of, a solicitation. This material is not a research report prepared by Bower Trading Inc. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

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The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Bower Trading Inc believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.



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