SOYBEANS - A HILL OF BEANS?
There are very strong cyclical influences indicating a big rally is coming in the Grains in a couple of months. At this point there is no way of knowing whether or not those cycles will be accurate. We have seen the value of cycles in recent years but also seen how they can be completely wrong like what has happened to the Euro mystery chart.
For the time being we have a market getting pinched, Soybeans. I could make an argument in either direction. As per my bands that are described in the Newsletter we are in a sell zone right here. These are typically strong zones to pay attention to. They are also not infallible. We could also have argued that there was heavy commercial buying at the recent lows that coincided with the Seasonal low and that would have merit.
As a result, we have a setup in both directions. The daily chart also shows a flat type of situation. What this means for me is that I want to play a breakout in either direction. I am not sure which way this is going and I am not into guessing. The orders in the Swing Service tonight indicate how I am going to play this market and it's counter parts. Until some of those parameters are hit I don't see any reason to make a guess.
We got our new highs in the DOW today and do your research and compare the volume to the last time we were here and it speaks for itself. I have gone into this previously so no sense in re-hashing it over and over. There is certainly no reason to fight this move, NONE. For you drones who are looking for any reason to sell any rally there is a possible trap pattern in the ES if Tuesday's low were taken out on Wednesday. Good luck trading it.
I don't use the MACD but many people do, it does have a big divergence here and there is also a megaphone pattern. As a result there are several justifications for taking a short trade here and one reason not to, Comrade Ben. Place your bets! I will cover megaphones in a future Newsletter edition, they can be very powerful patterns. I am not sure how all you spammers finally found me but holy smokes are you persistent. You should try trading you have the diligence needed to be traders.