FOR WEDNESDAY: (12/21) Holiday doldrums are hitting already. Beans broke key levels today and we have to sell minor retracements, and the same is probably true for corn. Wheat seems too oversold and with the warm weather, we have to wonder what happens when the next arctic cold front hits. If we get bounces on cattle and hogs for a day or day and ½ we’ll be ready to be short into next week.
MARCH SOYBEANS (electronic ok)
SWING TRADING RECOMMENDATION: Sell March beans at 1019.50 with a 1031 stop.
TODAY’S COMMENTS: (12/21) We’re rolling to the March contract which is trading 10.5 cents above January beans. Resistance on March up to 1019 and 1022.75. If the market is weak, it won’t take out 1020. The 29-day cycles are weak the next few days and we have a bias toward lower prices into the New Year. South American weather continues to turn bearish and we may need to be more aggressive in the morning in order to get anything on. Five waves down projects 985 on the hourly chart. Risk is up to 1030 so we may have to put something on.
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