In Chicago, the grains held up under early selling pressure in the Crude, The Corn Closed over 400, over the 200 moving day, Wheat closed over 550, and the Beans settled higher as well at 1005 1/2…All of the grains opened on their lows, and basically ground higher, with the exception of a mid morning blip lower in the Beans.
In the Stock indexes, after being lower early, both the Dow and the S&P500 responded well with better than expected earnings in ATT, Travelers, 3M, and McDonald’s…
As we get to the end of October, again, with no anticipated meltdown, in the face of so much bearishness in the Media, with high unemployment numbers from 3 Friday’s ago.
Take a look at these markets, and you’ll see that that last unemployment Friday may be a near term trading low, where the Dow poked down to 9350 and the SPZ traded down to 1012… Go back and look at my older posts and you can see that I thought that might have been a case of people selling stuff in the hole, anticipating a break, and then being reprimanded and punished for their bearishness by sitting through a grinding rally.
Tomorrow, being the end of the week, it looks like all the markets will try to extend their highs, even, possibly, in the face of the Crude looking like its going to 90 bucks…
Certainly higher Crude Oil will translate into higher grain prices, as the huge trend, of a weaker dollar, plays itself out…
In the Beans, I think 1035 to 1048 is the next target range, as we rotate higher…certainly the 425 level in the Corn, and the 550 level level in the wheat will be the base for a new rotation up to the 575, 585 level….
Again, breaks look like they are buying opportunities for longer term position moves..