FOR TUESDAY: (6/26) Grains look lower 1 more day followed by short covering into Friday. New research on cattle suggests lower into Wednesday if not into early next week. Grains do look higher the first week of July overall so the worst may be over if the market can do secondary lows this week and offer a light hedge buy in case of pollination. Cattle on Feed was neutral to bearish and now the market could be lower into Wednesday. Hogs are oversold and may have a chance to rally with a 5-wave pattern just about complete.
JULY CORN
TODAY’S COMMENTS: (6/26) Our orientation is to use a few-day pullback to get long, as the market looks higher after the weekend into July 10 and would think that a hot weather scare around pollination may inspire short-covering. Three waves up would project at least 368 on July, with Dec. being 21.50 higher than July. If you want to gamble through Friday’s USDA stocks report and the next weekend, we can buy a 2-3-day pullback here. Shorts for very short-term traders should work for a few days but not seeing a huge downside potential.
CYCLES OVERVIEW: Lower into Tuesday; higher Wednesday; higher into Thursday; volatile Friday; higher into July 2; lower into July 3; higher into July 5 and 10.
