There is a good T-line here in CZ. CZ is most likely over sold, and a lot of analysts have noticed the reversal on Monday/Tuesday. If we get a weekly reversal, that also will be bandied about b/c corn has not had a bullish story since July came and went with out a dome of death with heat/dryness. My guess is the funds might use this to lighten up on their long corn/short wheat spread.
The gap at 3.78 was filled last night. The next gap above is at 4.10 1/2 – 4.14 1/2. A settlement above this T-line will bring that talk balk strong. Farmers are still un-priced here. My guess is they won’t sell this rally, so it will be short lived. That’s just my opinion.
Moving on to the Dow futures, Sep has now had a 62% retracement of its recent sell off. Yesterday we got the 50%. Last night we got to within 10 ticks of the perfect 62% pullback. Use this bounce to take profits on longs. I have no opinion as to weather or not we run up to the old highs. Its a toss up in my opinion. Just a technical market now, barring any new fundamental news.
