The grains opened higher, made early lows, rallied back through the afternoon in choppy trade, attempted a run at the overnight trading highs and then melted through the afternoon. November beans alone posted a high in the afternoon at 10005, 7 cents below Monday night’s high at 12 1/4,, and then flushed 13 cents down to the 92-93 level… The 89 level looks like it will be near term support.
Similar action was seen in the Corn and Wheat, as Dec corn posted an afternoon high around 386 and then broke a nickle over the last 20 minutes of trade, while Dec wheat held up better, settled at 511, only 3 cents of its high at 514. For the day the beans finished down six, corn up four cents and the wheat up 17 cents…
Crude Oil was higher flirting with the 75 dollar level.. Although I have to caution the reader that I witnessed an interview with ‘experts’ on a cable show this afternoon positively giddy about higher oil prices being the portend for stronger economic growth, regardless of the fact that it is more a function of a feeble dollar..
It was only last week the world was astonished to hear that some members of OPEC, along with China Russia and France, were planning to move away from the dollar to a basket of currencies or more likely the Chinese Yuan…One week the world is ending and the next the spin is that its actually good for the US economy… There’s a flavor of the week what ever your bent is ,,,be it bullish or bearish…
I still think we need to go above 10000 in the Dow to suck in the last group of market timers and investors who puked last Feb/March with the Dow staring at 6500 level…At that point a 38 percent retracemtent of a 3500 pt move could expose the market to a correction of 1330 pts down to 8670… Wouldn’t that be a frightening turn of events for the buy and hold crowd?
As for the grains, continue to watch the dollar, however there are those gaps down below which may act like magnets to attract trade in the event of a nice correction.
Good Trading