Goldman Sachs came out today and advised their clients to get out of their corn longs. All the money in the world, all the research in the world, all the smartest and the best and brightest and their vaunted research gets them chopped to bits just like any other speculator who is long and wrong. However, if the rest of these funds which got long between 390 and 425 decide to flip, we could have a ways to go on the down side. We may have to get a real flush downwards. Such a flush will weigh heavily on these grains. Tomorrow being Friday, I could see the action decidedly bearish. We could have a flush, with a settlement on the lows to dress up the charts to give the last of the longs something to stew about over the weekend. Monday’s holiday will also make it a critical Friday Session. My opinion is I would be looking to sell rallies.
The funds are done buying. And the buying the did provide didn’t give any real support. My guess is now, the longs who are stuck will now flip. We could have a flush to lower levels, perhaps back to the 2009 chart lows. The daily charts will be your road map. Look at the major lows in corn wheat and beans, they will be the targets attracting the most activity.
Of course, during the day,we may very well have a vicious short covering rally. On balance, I’d try to wait for that rally to pick it as a sell point.
In short, I’d be bearish, but watching for short covering rallies intraday. Those rallies should be selling opportunities.
