FOR TUESDAY: (9/5) Lower pattern completions on grains should be over by Tuesday to 918 on Nov. beans and 338 on Dec. corn. Not seeing any huge reason to buy but that could change by Tuesday night.
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 349.50. Exit all if not filled market on open in the Tuesday day session.
TODAY’S COMMENTS: (9/5) Support at 348-349 if we get one more push lower overnight, which is what cycles suggest. Corn has already done the 14-cent recovery that we thought would take all of next week to happen and we have tight stops at 362.50 now. The market closed weakly on Friday. Patterns on the daily chart had suggested that the next push lower would be 30 cents from this bounce but that would be rather shocking to happen before congestion happens. Could be that we get wild congestion now between 344-360 and then a break to 330 after the next USDA report.
OVERALL: (9/5) We should get another 30 cents lower after the USDA report from some congestion triangle patterns. 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: Major low by Sept. 5; recovering into Sept. 12.
