FOR WEDNESDAY: (6/6) Stocks cycles are running out of time and energy. Often, the market will top out the first few weeks of June. Divergent high for NQ the next few days should be the beginning of the end for the summer so bears should start to salivate. For now, the bulls will stay in control a few more days.Continue reading
Expecting short-covering on Wednesday
FOR WEDNESDAY: (6/6) We’re expecting short-covering on Wednesday but Thursday and Friday could be lower, and patterns to the downside don’t look complete. Still, charts look terrible and the chances for new highs will really depend on whether dry comes with hot; our forecast has been for above normal rains this year. The outlook the next few weeks is not supporting hot and dry yet.Continue reading
Minor pullback for stocks
FOR TUESDAY: (6/5) Overbought conditions could lead to a minor pullback for stocks. The dollar is also due for a bounce; bonds are at key support, and a 1-day bounce would be helpful. Not sure anything that happens on Tuesday will mean much except redressing oversold conditions.Continue reading
Charts look terrible
FOR TUESDAY: (6/5) We’re open to staying short another day but not expecting that much more if you’re still short. Expecting that above-normal temperatures for June will start short-covering soon and may keep the market up for a bit from oversold conditions. Still, charts look terrible and the chances for new highs will really depend on whether dry comes with hot; our forecast has been for above normal rains this year.Continue reading
Stocks still look higher into next week
FOR MONDAY: (6/4) Political and economic stresses make it hard to take positions home. We wonder when Deutsche Bank will bite the dust and really destroy Europe. In the meantime, stocks still look higher into next week so the short-term traders will continue to play.Continue reading
Climax low for grains in next few days
FOR MONDAY: (6/4) Cooler weather the next few days may dampen drought fears even if temperatures are scheduled to go up later. Still, traders go with what they tangibly feel so the market should keep eroding but reach a climax low in the next few days for grains.Continue reading
Dollar looks lower into Friday
FOR FRIDAY: (6/1) Trade waiting on employment report. Stocks look friendly into at least June 7; the dollar looks lower into Friday and gold higher and crude higher for Friday. T-notes look lower into next week. Always surprises with these reports so it’s always difficult to get too exposed before a report. We’re starting to see lower dollars all of next week and that will keep us out of shorting gold too early. One has to wonder if stocks can come back given background noise.Continue reading
Grain cycles look higher on Friday
FOR FRIDAY: (6/1) Grain cycles look higher on Friday with lower action into Tuesday of next week. Downward patterns didn’t complete and we’ll hold shorts a few more days. Going to leave markets alone before the next wild weather report emerges – or not. First of the month fund buying should kick in and lift cattle for a few days but too hard to play after we got beat up on Thursday.Continue reading
Stocks look higher into at least June 7
FOR THURSDAY: (5/31) Trade waiting on employment report. Stocks look higher into at least June 7; the dollar looks lower into Friday and gold higher and crude higher. T-notes look lower into next week. Always surprises with these reports so it’s always difficult to get too exposed before a report.Continue reading
Grains still look lower on Thursday
FOR THURSDAY: (5/31) Grains still look lower on Thursday with short-covering possible o Friday. We still have to do research on next week but the market looks like it could have a sharp rebound if new weather comes into play so stay on guard.Continue reading