FOR THURSDAY: (8/3) Seeing grain weakness overnight and could easily get a secondary low to Dec. corn to 373 and Nov. beans to 967. The rule is usually to buy the secondary low when the dust settles.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts from 379 with a 385.50 stop.
TODAY’S COMMENTS: (8/3) Sold 1 contract Wednesday night. We’re not inspired to buy although minimum support levels have come in the 375 region. If the market holds the 373-5 region on a secondary low, then nibbling for an August bounce might be in order but the weather hasn’t changed–just a lot of profit-taking setting in. Looking more like a new low to 372 or 367. Traders can do a light short tonight as the odds favor a low on Thursdays and patterns look bearish.
OVERALL: We could have a congestive rally that stalls under 396 and then a breakdown to 355 is what daily chart patterns suggest. We’re not clear on timing for this but do think that corn will hold up until Thursday.
CYCLES OVERVIEW: Lower Wednesday night into Thursday; sideways Friday.