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Mascoutah, Illinois | March corn closed today in the $3.75 area. The gap I am looking at is $3.85 which means we have 10 cents upside before someone MUST make a stand. Will the shorts win out and press this market lower at the $3.85 target or will the longs get some momentum and take us into the gap?
It is the last week of February and I would be a seller at $3.84-$3.85 area for now. I believe we fail at this level and trade back to $3.64-$3.65. This doesn't make me a bear in corn. I like the way corn is trading with no double digit moves to one side or the other as of late. The $3.85 area is critical resistance and I would be making sales here. Longer term, I maintain my $4.20-$4.25 price target between now and the end of June.
The bean market feels like there are many "shorts" wanting to step on the throats of anyone trying to push this market higher. It appears the 17 cent move higher on Tuesday was a "short covering rally." The apparent large number of shorts in the bean market is very constructive if you are looking for a sharp and quick rally higher. You must be very nimble in soybeans due to the apparent large number of shorts. Volatility will continue to prevail in soybeans until this tug-of-war has one side or the other taking control. I believe we see another big "up" day coming in the next seven trading days. If you need to make sales, take advantage of another person's pain. (I am referring to the people on the short side.) I am a bull longer term but you MUST take advantage of big moves to upside for the time being. I am maintaining my price target of $11.08 between now and the end of June.
Edited by djmcountryboy 2/24/2010 23:42
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Corn and Soybeans: How I would play it?
