Monday Morning Update--The worm is turning

I said to clients many times last week that the market felt like it wanted to go higher. From my viewpoint, the fundamentals continue to be bearish, but there is something more here. We had rain in SA over the weekend and grains finished stronger in the overnite. Gold broke out of the long consolidation to the upside and we have follow thru this morning, last at up 16 per ounce @ 913. I have been advising grain farmers to sell into the strength, still looking for a lower trade. Following a marketing plan is always the right thing to do, however, the end users need to pay heed to the tape and consider using any weakness to finish out purchase for the next 60 days as we seem to intent on moving higher period.

In this business, one cannot fight the trend for long. The market is right up against flashing lights that are buy signals from the technicians. If you are a producer, stay informed and set some price targets ahead using wide scales. If you are an end user, pay attention and buy and weakness for deliveries the 60-90 days.

Good luck,

Jon Hart