First off, the ZC Corn. This chart shows that we have seen a 50 percent correction of the 66 cent rally. Today’s low took out the 50% retracement at 376 5/8. Next support is at 368 3/4. Take advantage of this down move to cover shorts. Depending on how much of a turn-around-Tuesday bounce we get, it […]
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The above chart was a daily chart for August. August expired this week. Unfortunately, I am away for the weekend and can not access my charting software. On Monday, I will up load a chart covering the new spot month, CLQ, August.
Be that as it may, this symmetrical triangle formation is a powerful indicator. Again, I tend to lean toward the simplest, purest chart formations when looking for moves to either go with or to fade. This chart gives a graphic representation of how a trend-line acts […]
First off, if you don’t understand trendlines, go read some basic technical analysis. This entry focuses on the importance of long-term tend lines.
The two snapshots of the Dow serve as key illustrations as to the self-fulfilling nature of trend lines.
Chartists and non-chartists look at trend lines. Period. Analysts who profess to be purely fundamental, if you gave them sodium pentathol, would admit to looking at long-term trend lines.
Far […]
Taking a look at some charts late tonight. The Dow Jones Cash looks like its poised to take a Summer Dump down to the 9600 level. Basic Technical analysis confirms that the intermediate (3 to 6 months) trend is lower. We have had lower major lows and lower major highs for the past 3 months. Its funny […]
Taking a look at some charts late tonight. The Dow Jones Cash looks like its poised to take a Summer Dump down to the 9600 level. Basic Technical analysis confirms that the intermediate (3 to 6 months) trend is lower. We have had lower major lows and lower major highs for the past 3 months. Its funny […]
Commitment of trader’s report today showed funds are long 193K contracts of corn. Today’s trade watched profit taking as the weather forecast took out the premium. New crop corn (CZ) snapped to a low print of 389 1/4, 20 3/4 cents from last Tuesday’s 4 month high CZ at 410. Support lies at 384 1/2, 376 1/2 and then 368 1/2. Any one of these should be a good entry point for a trade, looking for a 5 to 10 cent bounce off of those levels. Will new crop challenge the 415 March highs? It depends on the weather forecast and the steadfastness of the […]
Its the weather market of 2010. July 15th and we have our bullish scenario. Significant 66 cent rally from the June 29th contract low in Dec corn, 115 rally in old crop beans. 150 rally in new crop wheat. Certainly a gift for farmers who held out on cash sales.
As of yesterday, we had funds continuing to move towards new long positions, which is positive. Longs adding to longs, adding to previous winners, are necessary for a sustained rally.
If you are a bull, this is the type of action you want to see, as opposed to weak specs jumping on the band wagon […]
I like being long SN, especially on a 20 cent break from 940 to the old resistance level at 920. 950 and 975 are good targets to sell into on the first bounce up there. As July gets ready to expire, we should see a lot of significant price development, with less static noise and choppy trade. Old crop beans should be bought on dips. However, you need to have stop limits beneath every buy order. If I am right, and we get another 75 to 150 cent rally, just move up your trailing stops. Beans are made in August. Its the middle of July. […]
First off, too bad no one actually reads this thing. I wrote just last night that it looked like old crop beans SN would go test 1020. We did just that, traded there and then broke hard right after. Resting order to sell there worked well, especially if you bought the dips on the way up. However, currently my readership is about negative 3, so it doesn’t really help anyone but me.
Tomorrow we have USDA out.. It will most likely be bullish in tone. However, I am anticipating a spike higher and then a correction lower on a “buy the rumor-sell the fact” trade.