FOR MONDAY: (7/31) Beans have completed enough downside to negate new sales. We have to think that could bleed into corn and even if we want to see lower prices to 355 on Dec. corn, we probably have to get through a congestive week of choppy action and not sure when it will break. We often get these 3-week, doggy August rallies in tight ranges. Beans are a clearer buy with the pattern completion if you have to be long. Will let the weekend weather news and dust settle out.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts with a 395.50 stop. Exit all shorts at 386.75.
TODAY’S COMMENTS: (7/31) We’re tightening stops as 393.50 shouldn’t come out and patterns suggest a retest of 386.50 and then congestively higher prices this week. Beans are the one to buy and have more potential. Still, August dog-day rallies are usually boring and we aren’t that interested. If the market got to 373-5 on a surprise, that would be a better area to buy for an August rally.
OVERALL: We could have a congestive rally that stalls under 396 and then a breakdown to 355 is what daily chart patterns suggest. We’re not clear on timing for this but do think that corn will hold up until Thursday.
CYCLES OVERVIEW: Bottoming/higher into Wednesday/Thursday.
