FOR FRIDAY: (1/20) We logically would expect end-of-week profit-taking after nice run-ups but market looks higher Monday and we’ll have to see how weather shifts over the weekend. Cycles for meats may turn a bit tired which usually means upward movement will be limited and usually it leads to profit-taking. Cattle may have a better chance to rally on Friday. Inclined to sell hogs if we get a chance.
MARCH SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (1/20) Slight new high may make it hard to buy 1062-3. Minimum pattern completion to 1084 could be followed by something bigger but not break the uptrend. Some extreme change in weather might lead to filling the 1047 gap. At the point where it’s too dangerous to buy on a Friday but if we get a dip by Sunday, it may be the way to go.
OVERALL: Major resistance is at 1106. Upper targets on the daily chart at 1117-1120, and those numbers seem absurd for now but we’ll work on fundamentals analysis and see if that level is possible. Funds have a way of running away with this stuff.
CYCLES OVERVIEW: Profit-taking Friday; higher Monday.
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