FOR TUESDAY: (2/7) Grains are waiting for USDA report on Thursday but cycles look lower into Friday so not thinking the report will go well and we should use any rallies to get short. Cattle continue to act toppy and suggest a sale and we’re top-picking hogs here and may exit by early Wednesday if they can’t break.
MARCH CHICAGO WHEAT (electronic ok)
SWING TRADING RECOMMENDATION: Sell March wheat at 440.25 with a 450.25 stop.
TODAY’S COMMENTS: (2/7) Projections to 440-1 are coming in but action on Monday wasn’t inspiring and we may not see it. We’re open to pulling the trigger if the market does get up there. Hedgers have to jump on prices between 438-441 and add if 445-7 comes in. Moisture should remain limited on the Plains according to maps for the next week.
OVERALL: Five waves up on the hourly would project 438 for a double top. Extended daily chart target is 447. Unless winterkill becomes an issue (and it’s always impossible to estimate), not sure why this market will get above old highs near 438.
CYCLES OVERVIEW: Sideways/higher into Feb. 9.
Comments are closed.