FOR WEDNESDAY: (8/9) Expecting a sideways day before the USDA report and as always we will have to take positions during the report to catch the moves. We are inclined to see lower action into Friday but could see the market recover to the upside starting next week.
NOV. SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (8/9) The market almost triggered the point-and-figure point breakout buy at 981 and some patterns suggest 984. While we thought that the progress report was a bit bearish, the trade had wanted to buy as it was so oversold from last week going into the report. We have to leave it alone for now. Should be sideways on Wednesday but lower the rest of the week. Closing above 980 will issue a solid buy signal but still thinking 942 has a better chance of happening.
OVERALL: The last 3 years, Augusts have been lower and bucked the seasonal trend to recover the July swoon. We are not sure we can get a rally to 1018 to sell again but we cannot sell the market near 950.
CYCLES OVERVIEW: Lower into Aug. 11.
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