7 Days ago, the wheat market popped higher, in fact, from the low to Monday’s 6-week high, the contract rallied 37 cents. Today we’ve had a sharp sell off, after trying to rally higher.
The funds look to have added to shorts in wheat. The 8-month T-line, shown below in WK and WN, illustrates how these longer dated t-lines can come into play. If we were to settle below that T-line for the week, both bears and recent longs would have to re-evaluate their positions.
This chart shows how the market tends to “rally up the staircase”, but corrects by “falling down the elevator shaft”. […]
