Sep Wheat - Steady
Dec Corn - 1 to 2 Higher
Nov Beans - 1 to 2 Lower
Has the cattle market finally capitulated? The odds are increasing on this front. Read below.
The August Live Cattle chart looks to have printed a buying exhaustion/capitulation day today. Price rallied above yesterday's high, then abruptly reversed down to close negative 1.875 for the day.
Some would call today a key reversal down. I don't know the exact definition. I would like to see a close tomorrow below yesterday's range for confirmation of a top. The chart effect is a double top.
Yesterday tested the June 7th high, then today closed well below that high as you will see on the daily August Live Cattle chart. If tomorrow finds follow through selling, there is a sell target on the chart.
All the market participants who bought above the June 7th high were either stopped out or they are under water.
August Feeder Cattle painted an interesting daily bar today. After rallying to new highs, the fund sellers pushed price to close barely in the negative (.10). The most interesting quality of the bar however, is that it is a perfect Doji.
The open and close were the exact same price, giving the Doji the most influence. When a Doji occurs after several days of buying, it indicates that the buyers ran out of steam.
This price action today occurred in the area of the 3 point from the triple high. You will remember the formation when you see the August Feeder Cattle chart again. The point of both cattle charts here is to tell you that the argument for a big rally that's exhausted itself have increased even more.
If the cattle markets, especially the feeders, begin selling off, this will help the corn buyers have more confidence. It will help put a floor under corn prices. I feel like today's December Corn's selling action today was just a trap to get more farmer selling and weak (small) speculators selling.
We are looking at a 1 hour corn chart today so you can see the point that appears to be a breakdown in prices. There will most likely be very little follow through selling from the bears.
Today was more likely an end to the selling than the beginning of a new down leg. I see it as a continuation of a bottom formation that is a fakeout/shakeout - fake selling and stopping out the longs.
Check out the 1 hour December Corn chart.
The selloff in soybeans today does not nullify the bullish inverted head & shoulders pattern or the up pressure on the August contract. Today was either a small correction in the new number 3 impulse that began Monday or it's a continuation of the number 2 correction.
We should know for sure by Friday's close. Here is today's August Bean 4 hour chart.
The September Eurocurrency has been on a strong buying spree the last few days. Remember, this trades opposite the US Dollar. Therefore the dollar is selling off and looks like it will sell to new lows for the move, below 100. Today, the USD sold off -1.210 to 100.193.
The Euro looks like it is trying to breakout higher, marking a new upleg. This chart action is and will be supportive to all US goods sold to foreign countries. Take a look at the Eurocurrency daily chart.