What's Going On?

I remember that line in the great spy series, "Tinker, Tailor, Soldier, Spy" on PBS about 30 years ago. Yes, I have it on DVD (& had it on VHS tape, too).

Yesterday had all the signs of a beefer selling rampage to protect their fees. The Rut downside leadership is the key tell (down almost 2%) , and the Dow moderation (down only 0.5%) means the real buyers weren't selling. All the trillions in trading funds need to generate movement to make fees and the real buyers do it on dips. ;-)

I've noticed some broad, steady selling in many commodities in recent days. I wonder if that's asset re-allocation or month end profit taking. That effect actually is common in commodity markets.

I've seen no news to cause me to re-think my outlook. Nothing has changed.

PS: USDA reported that corn planting is only 23% as of April 29 vs. 46% in 2006 and 42% for the past five year average. Good. Weather is good this week so the farmers should make progress, but rain is coming soon. They have a lot of planting to do with record acreage needed. Planting delays push the pollination phase into hotter days of summer that can really hurt yields. And a hot, dry summer is more possible as the La Nina is developing. That's why I'm long corn and corn options. (not a full position yet).