FOR WEDNESDAY: (2/15) Wednesday may be the best day of the week for meats and grains to recover and if we’re to get more shorts on, we will have to be patient another day. There is a larger cycle for grains that may be holding them up that peaks into next Tuesday and if the market can’t break down on Thursday, we may have to deal with it keeping the market up.
MARCH CHICAGO WHEAT (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (2/15) A close look at the weekly chart yesterday suggested that 455 can’t come out; otherwise, a weekly chart buy signal will get generated and that should be on a weekly closing basis. We’re tempted to sell again but this is the strongest part of the complex and it’s closing some of its bearish background noise for now and we will leave it alone. Will sell on Thursday if the market shows signs of failing. If not, we’ll see 458 and 463 and 475.
OVERALL: Weekly chart close above 460 would negate chances for new lows on the weekly chart but otherwise this is still a 4th wave. Not willing to top-picking without a strong reversal signal.
CYCLES OVERVIEW: Recovering Wednesday; lower Thursday/Friday; bottoming Feb. 20 (evening session); recovering higher Feb. 21.
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