Now We're Gettin' to the Gettin'

Today was another dismal day on the market. I am glad that I am young and have time on my side with respect to my retirement accounts (at least that is what I am telling myself to help with the sleep) These are very sad days for Americans as we sit idly by watching our investments and life’s savings shrink on a daily basis. Anxiety levels are very high as our country is yearning for some leadership. My title tonight is getting to the getting and by this I mean that I see the financial markets accelerating to the downside that should provide the opportunity for an interim bottom. Citigroup is a penny stock and GM’s in house bean counters are finally admitting that there may not be enough duct tape and band aids to keep them from filing bankruptcy. As crazy as this may sound, this may be just what the market needs. If our elected officials will not focus their efforts on the financial industry, the market will do its job to force the issue. The market will do what it has to do to get the attention of our leaders. I am banking on them being smart enough to understand that what they are doing is not working and changing directions is what the market is demanding they do. I just hope they listen before the down hits 5000!

I believe that the push downward in the financial markets will bring the uncertainty to a head. The politicians have to be under severe pressure to quit campaigning and do something constructive for America (not just the bottom 95%, but all Americans). A mark to market holiday for the banks just may be what the market ordered. Without getting into the specifics, this would as I understand it free up capital at the banks and in short postpone margin calls. Once and if this happens and the automotive companies admit their insolvency, I could see a substantial rally that should carry grains higher into the planting season.

The grain markets all lost ground today as we watched the outside markets but I continue to remain positive as I see more of the stars lining up for a rally. Until we break out of the range, fading the trade is the only way to make money and that is the HARD trade. I look for a rally, grain farmers holding inventory should remain optimistic and commercials looking to buy for the next 90 days should take advantage of May futures south of 3.60.

Good luck,

Jon Hart

You can reach me at jon@keystonecommodities.com or 8773434278. Thanks for reading and I look forward to any feedback.