Another great candidate for protecting heavily skewed long USD positions in Core Book.- All commodities are to varying degrees, negatively correlated to the long USD/fx trade.
- Just like the ED spread hedge, being long of Corn makes a lot of sense for inclusion in my long USD core book now.
- Technically, the weekly and daily charts look poised for an upside break soon. Weekly is trading above the bodies of a congested band of candlesticks of the past 8 weeks. Above 414 confirms buy signal. Have jumped the gun and bought small first in view of hedge requirement.
- A commodity able trade higher in the face of a stronger USD - has to be a buy.
- Addendum 18Dec09 12:15 am : Added onto long at 402. Will therefore buy less on 414 break.
16 December 2009
Corn : Perfect for Core Book
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