CH could drop another 20 cents a bushel. I want to buy corn between 577 and then again at 564. Seeing as we were just at 6.35 two days ago, and we are heading into a Jan 12th USDA number, we should see continued short term panic selling.
Wheat is a difficult trade, with absolutely no follow through. It’s easy to get chopped up on Wheat. There are two trend lines I am watching in WH. We are approaching the first today. If we settle below 777, we are heading to 740. If 740 does not hold, they could turn this market out, puking down to 710. We are are at a pivotal point. I would enter positions on stop orders. You may not get a chance if you have a limit.
SF beans look like a perfect up trending market. Don’t believe me? Pull up a daily chart. Its a textbook 45 degree incline rallying for the last 6 months. In July we were at 910. Two days ago we printed 1400. 5 dollars in 6 months/ A dollar a month rally? We may have corrections soon. I am firmly in the belief that these are breaks to be bought.
Watch the 1350 level as good support. A break to 1290 or 1261 is a buying opportunity. One thing, there will be a lot of volatility. Dollar moves over 2 or 3 days would not surprise me.
On the plus side, if you are disciplined, these markets will give opportunities for both bulls and bears. Only the pigs will be slaughtered.
Speaking of pigs getting slaughtered, the 1400 level in gold will continue to be a fulcrum. Sell it when we break below it. All it took was a story that Mexico was selling some of its reserves to give us a 40.00 slap down. Mexico? Really?
That is a sign the market is full of johnny come lately longs, fueled by the religious ‘end of days’ people who are chasing gold because they listen to AM Talk radio hucksters. Be ware. If I see one more “cash for gold” store open up in empty shopping malls, I am going to scream. This smells like a top.
That is all.
