Some of the grains are showing poor liquidity today, due to thin-volume trading, including both soybeans and wheat. This chart for wheat is perhaps symbolic of this phenomenon. Even spreads have widened for wheat and soybeans, which is rare during the day session, in my experience.Other markets are showing similar signs. Even gold prices have flattened and liquidity is fairly poor at this time.
Under circumstances like this, I will trade for just a few ticks in either direction on the most liquid markets, which are the 10-year treasury and S&P 500 Index futures. I am willing to take just a few ticks of profit.
I suspect that much of this flat trading is due to the on-going testimony of Fed and SEC officials before the Senate Banking Committee today. Financial market participants are hanging on almost every word of these officials for information about future movements of the markets.
