Every bump is another chance to go short. Someday the price of corn will come down. I don't care if it's 3,4,5,6,9,12 months. When it does CORN will be back down to the mid 30's.So if I shorted @ 50.00 and CORN is down to say 35.00,that's a nice return on your money! Not to shabby in todays maket.If somebody can show me a better return, dont be shy.
I agree, however, I have been unable to obtain shares to short from my broker, and I have tried to short almost every day for a couple weeks. I deal with a very large discount broker. Where are you finding shares to short?
I don't think CORN will get back into the 30's again, with the dollar depreciation that's happening. If there's a huge crash and flight-to-safety trade into the dollar, then this *might* go below 40, but otherwise, I expect QE3 to keep corn (and CORN) inflated at this level or higher.
I do think there's a chance of 45, even 42, and that's worth playing the short side right now. But at those levels, I would unload the shorts and start looking for signals to go long again (or better yet, add more gold and silver).
Gap left on the big rally that tarted in June of a tad over $37 should eventually get filled. It definitely looks toppy near $50 and I'm looking for a break to the 200 dma at least but long term you gotta love corn. I'm new to this commodity etf but I can already I like it. Plays futures like USO for oil and UNG for nat gas (not as good as GLD and SLV that hold bullion bars), but the commodity CORN is absolutely essential for food (if not fuel). Global demand is sure to rise.