Aggressive action in wheat.

The exchanges have taken steps to make the wheat market more tradable. The limit has been raised to 60 points with an option to automatically expand if there is a succession of limit moves. See here.

The effect of this should be to allow price to find its natural level much more rapidly, without being screwed down by  an unnaturally low limit move.

Tonight the market opened 55 points up (dangerously close to that upper limit again). I was able to take one trade, shorting a single contract. As usual I took an exit when price did not move straight off in my direction and took a small loss of $62.50.

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When you see this trade on the charts it looks like a small winner, but the violent entry slippage in the current market turned it into a loss.

The slippage is quite a feature of the current market.

 

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