FOR FRIDAY: (7/28) We-re approaching end of the month, and fund short-covering may continue. We have one more chance for weaker prices on Friday and then we’re concerned that Monday and next week will be up and will start a 3-week August countertrend summer rally. Hogs are sluggish also and cattle seem a bit thin and we have gotten killed this week in choppy range and will leave it alone.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts with a 396.50 stop. Take more partial profits at 375.50 oco market on close on Friday.
TODAY’S COMMENTS: (7/28) Corn didn’t do enough to tell us anything new. We can stick with shorts at least one more day and take more partial profits at the close of Friday. If we hold over the weekend, stops will be tight. Really wondering if 373 can come in now. A few more pennies to squeeze out in the next few days and then a rally in August.
OVERALL: Usually by August 1 the market recovers in August in choppy upward congestive action following the late July bloodbath. Have to hope that crop conditions will allow a gap to be filled. Technical breakdown now under 387 will negate chances for 422-25 unless it happens into the winter after harvest.
CYCLES OVERVIEW: Lower into Friday; higher Sunday night.
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