Whippy Wednesday again as Crude Leaks lower

Crude has been under pressure again on an off through the day…we have traded as low as 7723 in the front option.. This put beans under pressure early, along with the corn and beans… If you read the post I wrote last last night, I talked about 961 being a band of support on the daily charts…We traded as low as 959 and change, then snapped higher early in a nice whipsaw that punished early shorts.

Typically those chart points are good for 2 or possibly 3 bounces… at which point they are totally violated lower, or serve as a new low from which a new base is built…grains had to be getting a little over done, with a 50 cent break in the beans since last Thursday night’s overnight highs in the beans… The corn and wheat all had similar down drafts… Now we will have to see, again, how these outside markets affect prices in the grains.

The metals and crude are all under recent pressure due to the bounce in the dollar…There have been some rumors that there has been a beginning of an effort to support the dollar, but a much larger up move will have to be sustained for that to be anything other than conjecture and wishful thinking by dollar bulls…
Tomorrow should be interesting in the stock indexes as the long awaited 2nd quarter GDP comes out.
If it doesn’t hit 3.2 there will be a negative reaction… If it does hit 3.2, it could be a down draft anyhow as people use strength to unload longs… All in all, at 730 AM tomorrow when the figure comes out, or whenever it is scheduled to come out, I would sit on my hands and wait for the initial hysteria to be over, unless you have a desire to bet your hunch…

No matter what happens, the aftermath should give plenty of moves to trade… No need, it seems to me, to pull the pin on the hand grenade any sooner by trying to guess the direction of the first 100 point flush…Unless, of course, that’s your strategy…

Good Trading.

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