Daily Market Commentary

EQUITY - Thursday really looks like a short term high was put into place in the S&P 500 as the market seems to be moving into a weak state. One item to notice is the fact that most of the big money players took the last half of the trading day off and notice that the CBOE Put/Call ratio finished at its lowest level in quite some time. This to me translates into the fact that the weak hands are now short term bullish on the market and the timing could not be any better for a pullback.

Please understand that I remain Intermediate Term Bullish as I expect this decline to be nothing more than a normal pullback in an ongoing intermediate term rally phase.

CORN - Bumping up against some short term resistance here. This may require the price to pull back a bit before completing its counter-trend rally. I remain steadfastly bearish on corn prices over the next few months and I do anticipate sharply lower prices. Just simply to many people thinking the corn market is going to the moon with the Ethanol hype. Please refer to the archives for a more detailed explanation of my long term outlook on the grains.

COCOA - Currently some indecision in the cocoa market that looks to me like it will be decided to the downside. Much like the equity markets, the weak money in cocoa seems to be getting sucked in at precisely the wrong time.

10 Year T Note - 10 year note looks to be in a strong position for a decent rally. It should have the ability to take out its most recent highs at the 109 1/4 area. Should be good timing for a rally with the potential decline in stock prices and an infusion of capital moving over to bonds.

Individual Stocks and Current Educational Module Candlestick Pattern Experiment will be Updated Later During This Long Holiday Weekend.

I do hope all of you have a great holiday and weekend.

Matthew Ash

clearmarkettrend@gmail.com