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| 5th day of higher prices across the grains.
Wheat led us higher today with 5 straight days of higher highs and higher lows. Could see more short covering with the technicals shifting more friendly.
We had very solid action in corn. With again 5 straight days higher after having left reversal signals last week.
Soybean action was disappointing, I don’t like to see a market that bounces then closes off the highs and leaves a negative dojo like it did today because that could signal that we are going to resume the downtrend. However I do think we will still hold those lows.
I do think corn has probably made its lows and today was the first of a confirmation of that but we will need one last confirmation which would be a close above the USDA report days highs. But so far it looks good and looks like a chart that’s put a bottom in.
For those of you that have puts, I like taking profits. For those of you that don’t have courage calls bought yet and you’re going to want to have them bought before you make a sale if this market rallies and you’ll struggle to pull the trigger, I like having them bought. Courage calls help remove greed and fear when it’s time to make sales.
How high the market will go is hard to outguess. But the funds are heavily short and the charts are starting to flip. So if we could get some business to China it could help us see one of those seasonal rallies whether it happens now or in the spring/summer.
When everybody gets bearish that is usually when the lows tend to be in. The same thing goes to the upside. When people think it won’t stop going up and we have the talk about all time highs, the highs are usually in.
As far as the trends go, all of our markets are still trending down. However, short term all of the trends have turned higher. We are above the 5-day MA in wheat, corn, and beans.
Fundamentally we still have some good stuff going on in the grains. Argentina is hot and dry. I keep hearing stories about Brazil. But the market doesn’t believe the crop is small enough to have to ration US demand. We need to start making sales and need China to start coming in here and buying to help give the funds a reason to keep covering.
Listen to todays audio where we go over ways to outperform the market, spreads, calls & puts, hedging recommendations, what could cause our markets to bounce & more
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Corn lows in?? Market audio comments
