FOR TUESDAY: (7/18) Never quite sure how they will react to the crop reports but the market could stay bid into Thursday if there’s no major damage on Monday or Tuesday. Cattle cycles are very volatile but seasonals are on its side here. Hogs look mixed.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts from 395.25 with a 401.25 stop.
TODAY’S COMMENTS: (7/18) Sold 1 contract Monday night. Three-wave rally here would go to 393.50 and would seem like a gift. Corn is a bit stressed and if 397 comes out, we’ll stay open to a secondary high. This time of year, one rarely gets away with longs. If the market can breakout technically, we may stay open to recovery into Thursday if weather remains strong and technicals show up. If you have hedging and cash needs and want to go with the swoon into late July, then you may need to be more aggressive from 392-3.
OVERALL: Close below the key Gann square at 400 will be hard to take out now on even with a pollination scare. We have to stay open to a head-and-shoulders bounce but the market actually looks lower on Monday and that bounce may start from Monday night’s lower levels.
CYCLES OVERVIEW: Recovering higher Tuesday/Wednesday; lower Thursday.