We tested 10,695 today and proceeded to chopp sideways to higher in very volatile trade.
On three separate occasions I entered long positions and was stopped out for losses.
My buy area was around 10,800 level.
We settled the day close to 11,000.
Timing was the issue today, however.
There is nothing more difficult than taking losses on positions, only to watch them turn around in your face and be profitable.
It is important, however, to stay disciplined with the trading rules. Lose the discipline and in the end, every trade just becomes an exercise in hoping and wishing.
Trade selection is key. Order entry levels are key. Simply looking for a move one way or another is only 1/3 of the battle. 1/3 of the trade is entry point. The other 1/3 is managing the position once its on.
Capital preservation is rule number one. Sometimes that results in taking repeated small losses. Over time, the winners will more than compensate you for the winners.
However, on day’s like today, it will try your patience.
As for the grains, Corn and Beans will have to digest the USDA report some more. It was negative for wheat and beans, and bullish for corn. The USDA moved the yield from 153 down to 148. The bean yield increased from 41.4 to 41.8. 14.00 beans remains support.
This week will give us opportunity if we remain patient.
CER