FOR MONDAY: (10/9): Grains look lower Sunday but may bounce on Monday. Thinking a lot of congestive action before Thursdays USDA report. Some cycles have an upward bias next week so if grains can’t meltdown quickly from harvest pressure on Monday, we’ll want to be out of shorts. Cattle look higher a few more days and hogs are a buy on dips based on cycles.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts from 350.50 with a 357.50 stop. Exit 345.25.
TODAY’S COMMENTS: (10/9) We have a trading range this week between 351 and 344. If the market can fall on harvest pressure Sunday night, we would love to get out quickly on Monday, as some cycles suggest a recovery next week.
OVERALL: Eventually harvest pressure will do this market in as seasonal lows come in Thanksgiving. We still could even get down to 312 based on weekly and daily chart patterns. Cycles are higher much of next week and the daily chart patterns could go back up to 367 before the market turns lower again. We should get out on any harvest pressure over the weekend rather than ride this market up for a week with a drawdown.
CYCLES OVERVIEW: Lower Sunday; recovering Monday/Tuesday/Wednesday.
