FOR TUESDAY: (1/3) First of the year trading for grains is often crazy. Weather gaps up are possible and chances are they will be sold for the rest of the week and that is our strategy. Meats look firm this week on cold weather but it’s relative and not as bad as early January can be. Off to the races. Wishing you a successful trading year!
MARCH CORN (electronic ok)
SWING TRADING RECOMMENDATION: Sell March corn at 357.50 and 357.75 with 363 stop.
TODAY’S COMMENTS: (1/3) Without a rally to 356-59, we have no risk/reward to sell. The market often rallies the first day of the year and then be sold off the rest of the week. That has been our premise and we’re willing to sell early Tuesday. More skeptical about 365 and 372, and thin holiday conditions are living up to their hype. Will assume that current action is a b-wave if 345 holds and that we could still see another 10 cents up.
CYCLES OVERVIEW: Volatile Monday night/Tuesday; generally lower into Jan. 5.