Wade Assurance
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • Crop Overview >
      • Corn
      • Soybeans
      • Wheat
      • Supply/Demand Factors
    • About
  • Disclaimer

The Risk of Managing Risk

6/26/2020

Comments

 
I suspended all the wheat stops this morning.  There were a lot of $4.90 stops sitting there and with the market about to open this morning near $4.92, I fear there is a good possibility that there could be a big order to push wheat down to sweep the stops.  This happens all the time any more.  I will get the stops put back on once this passes, but unless you let me know otherwise you do NOT have a wheat stop. 

Here is why I am comfortable with no stops:

1.  Maybe only 5 cents from here from triggering a CCI Buy signal.  I would hate to lose our position now this close to a buy signal.
Picture
2:  RSI readings oversold
Picture
3 and 4.  Weekly readings oversold. and price at the 200 week moving average which should be support.  Price rebounds from these levels virtually every time.
Picture
I just don't see a lot of downside here but do think there is a very real risk of being knocked out at the open.  You are out of your wheat stops unless you tell me otherwise.
Comments
comments powered by Disqus

    This Page

    The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market.  All trade recommendations are made in "The Pit".  This is also a blog page where you can ask questions, post your thoughts, or ask for help.  Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.

    Archives

    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    December 2017
    November 2017
    October 2017

    RSS Feed

Steve Wade and Tyler Wade of Wade Assurance are associated persons for AgDairy LLC.

                           Commodity Risk Disclosure Statement

The risk of loss in trading commodity futures contracts can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Wade Assurance is an equal opportunity insurance provider.
CONTACT US
Steve Wade
swade@wadeassurance.com
​
Tyler Wade
​twade@wadeassurance.com
Picture
270-234-6074
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • Crop Overview >
      • Corn
      • Soybeans
      • Wheat
      • Supply/Demand Factors
    • About
  • Disclaimer