In today’s issue, we’ll recap recent trading activity and recommend taking partial profits on your wheat position.
First, we were stopped out of our Direxion Daily Financial Bear 3X Shares (FAZ) for a modest loss.
While this is disappointing, the stop did its job of limiting risk and taking us out of a losing position.
We’ll look to deploy those funds on a new opportunity coming right around the corner. Stay tuned.
Now for a trade adjustment to make right now …
It’s time to take partial profits on your Teucrium Wheat Fund (WEAT) position and adjust the protective sell stop.
By reducing the risk on the trade, we can push remaining shares for even more gains.
Wheat prices have taken a decisive turn higher in recent weeks, as the market comes to grips with a smaller wheat crop and corresponding decline in quality.
And just as we anticipated, the bear camp is in the process of unwinding their previous record net-short positioning in the market.
Quality concerns are front and center. The latest weekly figure from the USDA last night rated the U.S. spring-wheat crop in the worst shape since 1988.
Supply concerns are made worse as the French wheat crop contends with extreme heat going into the key “filling” stage. This has potential to limit output further, with just one month before harvest.
We think there’s more upside left for wheat prices in the coming weeks. But that upside is likely to come with greater volatility surrounding weather forecasts. And for that reason, it makes sense to reduce exposure and go for more gains.
Here’s what to do right away:
Place an order to sell HALF of your shares of Teucrium Wheat Fund, symbol WEAT, at $7.25 or better. This order is good-till-canceled.
Then IF AND ONLY IF my sell order is filled, CANCEL and REPLACE my order to SELL ALL my remaining shares of Teucrium Wheat Fund, symbol WEAT, at $5.89, STOP. New Price: $6.54 STOP. This order is good-till-canceled.
Hold all other positions and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
