FOR WEDNESDAY: (11/23) Grains look higher as do hogs on a friendly storage report and cattle may hold up. Friday seems more vulnerable for selling grains and meats if you are inclined and early next week is mixed. Holiday trading is always a mess and usually we can live without it.
MARCH CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (11/23) The funds are trend-trading and buying dips and market may hold up another day and be down on Friday but possibly higher Monday. Still, key Gann number of 360 will be hard to get through today and we have a bias for a setback from overdone conditions. Only sale might be if we get up to 364 and get a pattern completion and overbought conditions. Hard to fight pre-Thanksgiving buying and thin conditions. Would expect end of the month profit-taking still next week starting Tuesday. Seasonal lows are in but market is still often seasonally under pressure later. This crop is still huge and higher prices will attract more selling so be patient.
OVERALL: There are so many vulnerable spots in January with the larger cycles that we do not know how long we can hold out waiting for it. Fundamentals are not supportive at this point either. Sept. corn got as low as 312 last August and monthly chart patterns would allow 279 if there are not bullish factors coming to roost. At the moment, 300 corn would not be shocking and if you have reason for early sales we will jump on more hedges and sales near 387 basis March. Rally into late Dec. and possibly mid-January are typical set ups for new sales.
CYCLES OVERVIEW: Higher Wednesday; closed Thursday; lower Friday; higher Nov. 28; lower Nov. 29-30.
