Futures Commentary and Analysis

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The Russell Index May Soon Leak Badly
Jerry Welch - IF - Thu Dec 07, 8:29AM CST

Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Follow me on twitter@commodityinsite

Commodities per se, as measured by the CRB Index have tumbled badly since November 24. The Index was slammed hard yesterday and leaking mildly today. Themild leak today has the widely followed index back to levels last seen on October 20. Should the Index, now trading around the 184.32 level drop below 180.00, it would represent a major breakdown for commodities per se.


There has been so much weakness with most commodity markets the past few weeks that selling further weakness makes my head hurt and my palms sweat. But there is a trade staring us in the face that may offer those that are well margined, bold and bearish a low risk opportunity. The trade I am suggesting is to sell short the March Russell 2000 Mini contract right now.

The range today for the March Russell is 151650 to 151140 with a last of 151330, up 220 for the day with the December contract showing a similar. Shorts placed here and now should have stops at 151700, intra-day basis March futures. While the Russell is a tad higher the S&P and Dow are actually in the red. Should the Russell close lower by any amount, it should, could or may flash bright red ink tomorrow and going into the weekend. But my work does show the Russell is about to start leaking badly.


The time is 8:16 a.m. Chicago



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