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Tech Guy (early) Opening Calls & Comments for 10/25/22

Dec Wheat - 2 to 3 Higher


Dec Corn - 1 to 2 Lower


Jan Beans - Steady to 1 Lower


The US Dollar was down minus 1.149 to 110.765 today, lifting virtually all US assets, except Dec Wheat which was down 6 to 832.75. 820.75, which is the August 8th high, is the next underlying support. I believe I heard they're getting some moisture in the plains. Here is the updated Dec Wheat chart:



Yesterday's limit down in Dec Cotton just above 76 provided great buying support today as cotton traded from 76 up to very nearly limit up at 79.09 and closing at 78.31. All this back and forth trade in Dec Cotton means the fund buyers are accumulating longs and the chart is making a good bottom.


Take a look at the 60 min Dec Cotton chart showing the limit down on Oct 19th, the sharp rally on the 21st, limit down again yesterday, then the sharp rally again today. Remember this wild back and forth action on a chart support area is an expression of the battle between the bulls and bears and the fact that the bears are fighting until the end.




Also noteworthy, the Cotton board is inverted all the way out to July of 2025 - the Dec contract is the highest price of all the other months. This tells us we have a hearty bull market that just needed a very good flushing out to rebuild it's energy in order to continue higher.


Dec Corn showed a little strength today closing up +3 cents near the price of 684.25 - just 2 cents above the important 682 pivot point.


Jan Beans also found buyers today, closing up +11.75 to 1393. This strength came from Dec Meal rallying to test yesterday's high near 418.40 and closing up 5.90 to 414.60. You can see the ascending triangle being formed on the Dec Meal 4 hour chart below which projects a 27 point rally to test the contract highs.




Dec Crude Oil is still trading sideways between 83-86 and the Dec S&P rallied 44 points to a high of 3874 today breaking out above the neckline. However I think at least a 50 point correction is due here down to the 3800 area. See yesterday's S&P chart for reference.