What makes for tops in a bull market? The first cap for a market is production. When you have a major report, such as on Thursday, you can get a pivot point, which points to a formation of a ledge or zone. Look at my brackets here and let’s review the basis. 2007-2008 new projections are for worldwide production to come in a little higher in total foreign growth, which is what my readers have been looking for out of this report. Now with the USA numbers at 5.90 and total foreign at 44.88, I will place this as neutral. Now take a look at this chart, and how far we have come, and think what a neutral report reflects.

What does this mean to a current flat position? I feel it might just be time to look at a new short position. We have rallied about 1,500 points now (maybe just a bit more), and we should not risk more than 2 cents or new highs from here.




Now, with all trades that I put out there you have to ask where the fly in the ointment is.

Desert Locust Swarms

Here it is, with all the drama of the new Planet Earth program.

With the recent floods in the Punjab region, the desert locust eggs have spread from the water flow. And according to the U.N., there is the potential for a swarm. Now there is a bumper crop of cotton waiting to come in from Pakistan, and this is good grade cotton that accounts for two-thirds of the nation’s export. So this is no small crop.

So keep tight open stops and hope for a small locust hatching, and you could see a nice retrenchment this harvest.