Dow Cash Support at 11,625, 11,240 and then 10850.
Each of these cash levels should be bought on an initial break.
11,240 is, in my opinion, a good short term downside target. That would require a sell off of another 600 points from today’s low. I imagine we will pause at 11,625 first though.
Either way, its August. Europe is going on vacation. For the next 3 weeks, the trade will be stupidly volatile. CNBC “analysts” will no doubt be shopping for razor blades and slip knots, preparing for the end of the world here at some point.
Bottom line, last July 2010 we traded down to 9600. Currently we are 1,000 points off our recent highs…
I believe we could trade sideways multiple times in volatile trade through a 1500 to 2,000 point trading range until we figure out if this country will address its core problems with taxing and spending.
Regardless of where you fall on the political spectrum, you have to realize that “cutting the rate of increase in growth of spending” is not the same thing as “cutting spending”.
As for the grains: Interesting today, everyone I know received an email showing pathetic looking corn ears supposedly from Iowa and Illinois.
Coincidentally, FC stone came out and dropped yield estimate 5.5 bu/acre for corn.
Bullish. CZ, which had not been able to mount a charge above 7.00 for a long time, today settled at 7.15 3/4, LIMIT BID. Tomorrow, with expanded limits, we could see $7.60. If, however, this was just a head fake, the downside correction could be horrendous.
Resist jumping on the band wagon just yet. I want to see how we settle Friday.
That is all for now.