FOR WEDNESDAY: (8/30) We have to start thinking about month-end profit-taking, fund-squaring and pre-Labor Day thinning out of the trade. That makes new positions a bit more precarious, as profit-taking will enter. Hogs should start short-covering to the upside. Cattle look wild and will do a secondary low the next few days and grains still have lower to go as late as Tuesday when we return from the holiday.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts from 388.50 with a 362.50 stop. Take more partial profits off at 342.50.
TODAY’S COMMENTS: (8/30) Corn could still fall to 338-340 by Sept. 5 even if we get some minor month-end and pre-holiday short-covering. At best we may see a 14-cent rally from Sept. 5-12.
OVERALL: (8/29) Grains are still potentially in trouble into the day after Labor Day. Patterns look like we could have a 14-cent bounce at some point between Sept. 5-12. That could be followed by another 30 cents lower. At some point in October we could have a 26-cent bounce before a final low. Major weekly chart support at 312 should hold.
CYCLES OVERVIEW: Bottoming by Wednesday; major low by Sept. 5; recovering into Sept. 12.