Turbulent Times

I hope my readers in the US had a good holiday. While your market was closed, the rest of the world had a rough ride in their share markets. In Australia we were off 7% for the day, and now have an official bear market as the pull back from the peak last November exceeds 20%.

It was interesting waiting for the grain markets to open.  The Dow was way down, but as I write it has recovered somewhat following the Fed’s 0.75% rate cut. I wonder if the Fed’s charge will effect a dramatic rescue, or they will be left looking like King Canute?

There were some sharp moves in the currency markets as well, and I think these often feed through into the grain pits. At all events, wheat traded with a good deal of volatility in the open (see chart below), but I was unable to find a trade and have closed up shop for the day. 

22-jan-08.png 

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