FOR MONDAY: (8/13) Never got the spike higher to get more shorts on but we’ve been hedging early. Grains cycles look mostly down for a week now, and the reality of the crop size and condition may continue to impact the market. Will be difficult to get new positions on but we’ll see what we can pull off. Nearly impossible to compete with computer traders who get orders off in nano-seconds while we decide where our entry will be, and even market orders get killed when the roof caves in. Working on weekly chart cycles and patterns but hard to imagine anything coming to the rescue until late October if demand picks up or SA has planting problems.
SWING TRADING RECOMMENDATION: Sell Dec. corn at 371 and 373.50 with a 383 stop.
TODAY’S COMMENTS: (8/13) Corn didn’t get anywhere near the ideal sell zone of 390 and the print of 374 on Sept at weekly chart resistance was a telling sign that the market wasn’t going to go up much more. Market quickly going to be at 360 which is also the mid-point of the new cash range but with the lower end of that range at 310, there’s much more to fall here. First support on Sunday night at 367 with rallies probably stalling at 374, and then 364 should come in. Extended target down to 358.50 very short-term.
CYCLES OVERVIEW: Lower Aug. 13-17.