Tuesday, April 22, 2008

Soybeans -- Almost Lock Limit

Traders love soybeans. I certainly do today. I even like to eat them. They're delicious!

We almost reached lock limit today. I'm glad we haven't, however, because when we reach lock limit, the CME automatically increases the lock limit for the next day, and this usually results in another increase of margin requirements. I expect a sell-off into the close, as day traders liquidate their positions before the close of the market. Still, "anything can happen," as Mark Douglas lists in his book as one of the 5 Fundamental truths.