CZ 13 has a Trend Line Above which should give a good selling opportunity.
The USDA on Monday will be followed on Oct 11th with a supply and demand report.
The last 2 numbers were bullish for grains, especially beans, but we have seen little follow through after the first 24 hours.
SX has been stuck between 13.00 and 14.00 for the last 4 weeks.
Wheat seems to be trying to display independent strength but will be looking at Monday’s report for confirmation.
Finally the corn: $5.00 corn has not been a factor since mid-July. Look at the chart below;
There is a trend-line coming into play at the 4.75 area. In my opinion, a rally to that level should be used to catch up on sales.
If the August low at $4.45 3/4 fails, it opens up a test of $4.25 or $4.00
As for the Stock Indexes: Dow futures specifically: We have retraced 1/2 of the recent 980 pt rally. The bottom at 14677 the top was the record high at 15,658.
About all this level was good for, in my opinion, was a day scalp. On 4 occasions today, you could have bought against that 15,153 level and scalped it for 30 to 40 Pt’s. You would have had to take some heat 3 times as well of about 20 tics.
I’d be more interested in buying a break down to 14,648. For now, I would be a seller here at 15,190 with a buy stop above at 15,290, looking for that flush next week with the drama in DC over the debt ceiling and Obama care.
