FOR TUESDAY: (8/1) While speculators can have a bias toward being long grains into Thursday with seasonal patterns and cycles, there’s no reason to step in early. We probably can buy any weakness tonight or wait to buy with the funds on Tuesday. This is just an oversold play but patterns and confirmations for buys on beans from last week have us leaning that way. Corn and wheat have not confirmed and we would love to see lower prices and an exhaustion there for buys to set in.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn longs from 383 with a 379.50 stop.
TODAY’S COMMENTS: (8/1) Bought 1 contract Monday night. Three waves up should go to 392.75 quickly but we do see higher prices than that the rest of the week. We should get long tonight and see what develops. The 29/30 day cycles are supportive. Chances of seeing 373-5 this week are small and we may have to wait a while to get that low.
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: Bottoming/higher into Wednesday/Thursday.
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