Friday, October 15, 2010

Wheat contango

Contango is blowing open in wheat, which is a strong bearish indicator.  Short a longer-term future when the front-month breaks a recent low, risk a small amount, and you have a good chance of a nice winner if you hold it a month or 2.

ABK is getting a bit whippy each day but I'm still long from .61.  Still long PMI as well.  With this mortgage fraud stuff PMI has the 2nd best upside besides ABK.