FOR WEDNESDAY: (12/28) We had higher grains this week but never like to play the first day of three-day weekends although funds do and they got a bit crazy. Grain cycles look higher into the New Year and we’re OK buying pullbacks and exiting by Friday or near the open of next Tuesday. Cattle may hold up on Wednesday but look lower into the end of the year and hogs look higher all week.
MARCH CORN (electronic ok)
SWING TRADING RECOMMENDATION: Buy March corn at 352.50 and 351.75 with a 347.50 stop.
TODAY’S COMMENTS: (12/28) Five waves up project 372. Three waves up on the daily chart project at least 367.50. Pullbacks may hold 351.50 if we’re lucky with first resistance at 359. Despite flooding in some areas of Argentina, there are concerns about dryness next week. The moderate rain in Argentina this week stays north of the dry Buenos Aires region but does fall in the crop-rich Cordoba province. Maps show both areas will be dry next week. Corn harvest begins in January there. If the forecasts are correct, our cycle peak into New Year should be on schedule.
CYCLES OVERVIEW: Recovering into Jan. 3.
