Market Curiosity: Exploring Markets And Systems

February 16, 2011

Considering going long May corn for a quick trade

Filed under: Futures Trades, Just Watching — Tags: , , , — Jeff Fitzmyers @ 9:30 pm

Buy stop at 705. Only for day session, and price should open below 705.
Stop loss 692.5 ish.

+ Corn is currently the stronger grain.
+ Price is using the 10 EMA for support.
+ Weekly CCI is above a slightly rising monthly CCI.
– Daily CCI is rather high, but that’s to be expected.
– Seasonals are not really positive.
– The commitment of traders for all the grains is quite negative. But that does not mean price can’t test the 2008 high around 765 before it reverses.
(These 3 price negatives can mean entities are moving to the short side. Bigger Money might try to run the stops of the weaker shorts.)

The expectation is for a quick trade so take partial profit quickly. If grains really are very bullish price could go significantly higher quickly.

± Soybean’s daily CCI is very oversold and ready for a bounce. Technically, price broke down on big volume. If a bounce does not happen in the next few days, time to look for low risk short entries.

Feb 17: Since May corn opened up, buying the open is possibly risky since the gap could be filled, or there could simply be a gap-n-crash if price is ready to go down. I assume only a very strong market will just keep going up. If price would have closed the opening gap and then started to rise, it would be rather safe to go long. At lease the risk would be cut in half.

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