FOR WEDNESDAY: (5/9) Grain cycles are mixed with many suggesting a recovery into Friday but we have seen them invert so often that we like to stick with patterns. If wheat completed 5 waves down to 500.50 and pulled corn down for a divergent low on Wednesday then we could get a recovery into Friday. We have a low-confidence trade tonight. Have to leave grains alone and the trade may leave them rather congestive before USDA.
JULY SOYBEANS (electronic ok)
TODAY’S COMMENTS: (5/9) We’re open to a larger congestive retracement up to 1031. We’re not in a rush to sell again nor do we think the market will run away to the upside, and we’re going to do one more sell looking for 982 at some point. Expect a congestive mess for now. The chance for short-covering the rest of the week is strong before the USDA report. Support at 1001 with bounces this week going to 1021 and 1027.
OVERALL: The most bearish pattern would project a 3-wave fall to 982.
CYCLES OVERVIEW: Sideways to lower Wednesday.
