FOR THURSDAY: (7/27) Should see grains head lower for a few more days but very oversold. We’re still open to selling beans and corn but wheat is too close to key support at 469.50. Cattle are often down on Thursdays and hogs still have a chance to reach to 8340.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts with a 401.25 stop. Take more partial profits at 375.50
TODAY’S COMMENTS: (7/27) Bounces not likely to take out 384.50 with support hit already for partial profits in the 380-380.50 area. New lows to 375.25 coming over the next few days. A few more pennies to squeeze out in the next few days and then a rally in August.
OVERALL: Usually by August 1 the market recovers in August in choppy upward congestive action following the late July bloodbath. Have to hope that crop conditions will allow a gap to be filled. Technical breakdown now under 387 will negate chances for 422-25 unless it happens into the winter after harvest.
CYCLES OVERVIEW: Lower into Friday.
