FOR WEDNESDAY: (5/23) We’re concerned about thinning holiday conditions already in the cattle markets, and it’s always difficult to take a grain position out over a long holiday weekend. We have a bias toward lower grains into Thursday with Friday maybe being position squaring. Cattle are already looking ahead toward the COF report on Friday. It looks like cattle could be up into the report and be lower after Memorial Day. Grains may also be up on Friday and have some follow-through into Monday night but it’s always the hardest day to play.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/23) Market hit key resistance at 1036. Looking for a pullback to buy if you have to get in. First support at 1019 and then 1014.25. With some grain cycles rather bearish the next few days, the market may be scalp countertrend sale and then a buy if you want to gamble about Friday and the weekend. That 1008 and 1000 gap area need to get filled and makes it hard to go in too high and certainly not chasing at the pattern completion. At best, maybe we’ll see 1070-2 into seasonal highs.
CYCLES OVERVIEW: Lower into May 23-24; short-covering Friday.
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