Another head fake in the grains. CZ traded up to 47 then just broke down to the 40 level. Nov Beans remain hemmed in at the 930 level, poking its head up there and then gradually melting down to the 16 to 17 level again…This looks to be a trading range sideways chop, which will give you opportunities if you don’t concentrate on picking tops or bottoms… Look at the ranges, and if they pivot off of the resistance go with the direction of the move.
The Dow and the S7P continue to trade sideways to higher, climbing the wall of pessimism and worry…classic bear killer action.
I’d like to see how the S&p will behave around the 1100 level and the Dow around 10000. Those areas on longer term charts look like they will provide opportunity.
The grains will continue to focus on China demand issues, potential frost, any harvest delays or rumors of fungus in the Corn… Barring any developments in those areas, it remains to anticipate a large crop growing larger, putting downward pressure on prices in both the futures and the elevators.