Corn Produces 94% Annualized Gains For The Bears
Eric De Groot | Aug 29, 2016 01:22AM ET
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the bagholders of trend transitions.
Tired of following experts or 'gurus' that consistently provide after-the-fact and non-actionable interpretations? Follow the message of the market instead. Markets are either focused bull or bear opportunities, or consolidation/profit-taking (CP) against them.
Corn's focused bear opportunity has produced an impressive 94% annualized gain for the bears since the second week of August. The message of patience , urged just two weeks ago, has rewarded the bears. Disciplined bears are booking partial profits and reducing risk into support.
A weekly close below 18.11 maintains the down impulse, while a close above resistance from 19.92 to 20.66 (red zone) pauses it and favors at least a retest of overhead resistance.
On Balance Volume (OBV), a crude measure of trend energy, suggests distribution . This favors the bears.
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