FOR FRIDAY: (10/6) There are very volatile cycles that dominate the next few days. Two years ago when we saw them, they created cycle high for grains and lows for cattle. Going into harvest pressure and one would think that the market would be lower. We’re going to wait for this cycle to get out of the way.
DEC. CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (10/6) If the market stays under 351, we could still see 344 again before congestive action continues. For the moment the market seems like a trading range between those two areas. We’re going to leave it alone. Breakdown would project 344 and then a recovery to 350-1 and then a move to 342.25.
OVERALL: Eventually harvest pressure will do this market in as seasonal lows come in Thanksgiving. We still could even get down to 312 based on weekly and daily chart patterns. Cycles are higher much of next week and the daily chart patterns could go back up to 367 before the market turns lower again. We should get out on any harvest pressure over the weekend rather than ride this market up for a week with a drawdown.
CYCLES OVERVIEW: Volatile Friday.
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