Wednesday 1 October 2014

Goldman downgrades grains

Last Fall when Goldman downgraded coffee, I posted it here and urged everyone to buy some via ETFs. You know what happened after that. I have been waiting for the same call for grains lately and it came today here. It's really amusing how these guys are playing the same game year after year. I reckon most grains including soybeans, soybean oil, corn, wheat and sugar are dirt cheap. I suggest you find an ETF, buy it and sit tight for a year. You will thank me with a few clicks on the ads.

11 comments :

  1. Can you recommend a good buy-and-hold ETF for corn or wheat?

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  2. Looks like SPY & Market could surprise to the downside to low 1900's this next week...My question is can the metals/crude diverge and start to rally without any significant $USD weakness this coming week?

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  3. Hey Bouraq, love your charts. I was just wondering what your thoughts were on the possibility of deflation taking the prices of commodities down even further. even though wheat and cotton and others are on decent support right now. here what you're saying about goldman though...

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  4. me again...any chance of charting the $DAX?

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  5. I shall be clicking on the ADS....

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  6. John, it's time USD gets a bit weaker. I reckon it may go down a bit to relax the metals, grains in the next weeks.

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  7. Of course it's entirely possible but not probable. They have been beaten down real bad from their peaks. Perhaps another 10% is in the books but the snap back should be quite something. DAX is hitting the internal support today. Expect a bounce.

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  8. Jakob Richardson2 October 2014 at 11:31

    It's funny you should mention the "contrarian trade" on Goldman warnings
    - Zero Hedge has cataloged a huge list of profitable trades over the
    last six years when they were telling clients the opposite. It's
    surprising behavior (unfortunately).

    I also like your
    recommendation of the agricultural stocks. On my website I've been
    complaining about them over and over but called the bottom in CORN a
    long time ago as it's coming up on strong support now.

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  9. Your Corn trading idea gading Goldman is interesting ...Do you trade Corn futures or the corn ETF...I trade futures but never have really followed the grains?...I guess the ETF has less risk to buy and hold...

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  10. I bought futures this time but ETFs are fine too. Some ETFs are somehow not effective enough in reflecting the price and some declines during sideways moves so you should choose carefully.

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  11. I learned from my coffee trade that commodity bear markets may take much much longer that one can expect. Oversold gets more and more oversold without any sign of life. That's what corn is doing now.

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