Last night saw a flush down to 912 in grains followed by a bounce back to 923 1/2. Wheat looks bad on the charts after WZ settled below 450 yesterday.. The short covering rally in the corn was a bit confusing, with CZ bouncing 5 cents higher after posting a new low… Today’s reaction to FC stone and the stock reports should give better sense as to where these grains want to go..
SX still needs to get above 935 level to get bullish if you look at the charts.
In the stock indexes, there is some bearish pressure today, Spoos are down 11 handles at 1044, so far and the Dow is down about 115, trading around the 9550 level. We are approaching the end of the Month. At the beginning of the month, I would watch for a bounce higher due to re balancing, as well as fresh money arriving in 401k’s Typically the first and the fifteenth of the month have a bullish bias due to this influx of new money.
Also this is the end of the quarter, so that patter may be more noticeable, rather that on a regular month end.
We will have to see if these markets have any desire to go up to those important psychological levels I have written about in past posts.
The most profitable trades will be taking a chunk out of the trend. Not attempting to pick tops and bottoms.
Take your 2 or 3 moves a day and capitalize on those.
C