There was a bottom extension in US Dow futures last night and this will probably mark the low of the current drop. This comes at a time when the market is already in support from an old compression and we are expecting a turn today. This is a good combination of circumstances, so we would cover all shorts in US equities today and reverse into long positions too.
The implications for other equity markets are also bullish and so we would cover all outstanding shorts here and try long positions in Germany too. This is our perennial favourite candidate in Europe for whenever long positions are needed and this is one of those times.
There was also a top extension in soya meal. We advised buying soya beans and corn in the August 6th edition and we would immediately take all profits on the soya bean trade – this has been very profitable and we would now stand aside for a while. Corn has rallied much less than soya beans and we would put a close protective stop on that long position and see if it too can rally more. An update: