FOR FRIDAY: (8/10) Another USDA report day. Cycles suggest a rally and usually these reports need to be sold and are key turning points. Grains look clearly lower next week and profit-taking will set in. The worst of the cattle fall should be over and we see a one-week recovery. Hogs put in a key low and look higher for about a week.
SEPT. CHICAGO WHEAT
TODAY’S COMMENTS: (8/10) Will be hard to top pick unless we put in orders way above the market and with the close at 563, hard to imagine 590. Wheat projects a secondary high to 592-594 but seems unlikely. Not sure we can wait for it but way too volatile. Much above 600 and patterns would allow 640. Key weekly chart resistance is at 602. We see no point in selling this market, and last week’s sell signal could have been a 4th-wave that will be followed by a new high. Given grain cycles this week, we’ll be patient about selling again and the worst drought in recent Aussie history and problems in Europe aren’t helping matters.
CYCLES OVERVIEW: Higher into Aug. 10; lower Aug. 13-17.
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