FOR THURSDAY: (10/25) Not seeing any major energy for grains to bounce until early next week so we should stick with shorts a few more days–and if we get enough of a lead on shorts, we can hang on. Cattle have a cycle high on Thursday and we’ll have to move up stops and probably be short into Friday but cycles will get volatile here. Limit-up on hogs is making them untradable. We also have a very major cycle high due for them on Thursday and then they turn lower.
DEC CHICAGO WHEAT
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (10/25) We took more profits on short wheat at 499.50 and don’t want to get greedy. Support at 492.25 if you have some more on, with bounces probably going to max. 501.50. Daily chart patterns to 460 suggest we should get some hedges on and aren’t seeing too many bounce windows until after the end of the month. We may consider reselling wheat depending on morning bounce.
CYCLES OVERVIEW: Lower Thursday/Friday; probably generally lower into Oct. 31.