FOR FRIDAY: (6/8) The G-7 meeting in Canada runs Friday and Saturday with fireworks expected, and we’ll see how markets are impacted. They may wait until Sunday to explode one way or the other. Hard to imagine Trump backing down but is that positive or negative for the dollar? We have currency rollovers and stock index rollers and FOMC on Wednesday so we’re more likely to get large range of congestion–and if there are counter-thrusts, we would expect them on Sunday night/Monday. Need to complete our June/July cycle work on Friday to see if cycles are confirming what patterns are implying.Continue reading
Beans hit extended target of 973
FOR FRIDAY: (6/8) Would think that end of the week short-covering might set in ahead of the USDA report on Tuesday. Beans hit extended target of 973 and corn not far from lower target. Wheat failed at a key number near 537 and came off quite a bit. We always worry about Friday hedging pressure for July wheat this time of year, and it’s probably a sale.Continue reading
NQ divergent high approaching
FOR THURSDAY: (6/7) 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. We have rollover coming for June currencies and stock indices and then congestion before the FOMC meeting next week so the easy trading may be just about over.Continue reading
Grains looking lower into Friday
FOR THURSDAY: (6/7) 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 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. No rush to cover shorts on grains.Continue reading
Positive stock cycles tiring
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