Grain Summer Lows In
Grains and stocks had similar action this week, both destroyed by mid week and come storming back. Corn $3.64 not only proved pivotal support as we have seen multiple times but by the end of the week wheat gets back over same level of $4.34.5 and corn could post an outside up week. Huge amounts of money geared towards commodities, think DB Ag fund type managed buy and hold speculative commodity alternative assets picking up steam. I continue to see the biggest markets in my three decades of floor trading ahead of us, like now. Buy inflation now is my theme but with trader rules because when crude rallies a small 6% this week, I advised using macro sell indicators to fade these huge moves after certain conditions are met (diamonds on charts?) and a few other secrets. Funds pretty much buy in certain timeframes hidden from mere humans. I offer high-impact levels in which patterns often immediately get triggered by the Macro players, Money Managers.
(charts do notproduce but on site).
I look for big moves like July crude now up 16% in less than 2 weeks ($7), just 16%. It’s happening and it is offering huge specific-trade, returns with small leverage, great location and tight stops. I look for macro moves when the crowd is long and wrong like coffee which is currently 132-ish that makes new lows by tiny amounts and fast vertical moves up. If you want to buy inflation I can give you different views that you will not find elsewhere. Macro speaking corn and wheat may have bottomed this week, new low stop. Get it? Always use a stop and so you can stay fresh as the coffee bulls being water-tortured will cave down still further to these olive (money colored) lines and then blast as they did last year for my clients including X-Chairman of Exchange amongst Pro floor traders looking for levels that hurt the most amount of traders. That’s my olive and it used to crush me before my last decade of research.
Soybeans- Traders bearish as we hit same indicator as last year may bail out the Farmers. As a trader I say Farmers are always long and never sell. Not at $17 or a host of examples but I digress. Fund money is gushing in again but get your sell strategy because this will not be for the faint hearted if my presumptions play out. What do you do on a big rally? You see, you just proved my point for some research to your trading (farm) services. Don’t feel bad those 2006 funds held out until last 2015 when I was pounding the table to clients that major extreme olive lines signaled inflation bottom picker’s stand up and buy. Gold was $1056 when people yelled at me that it was a shoe-in under $1,000. Remember?
US dollar- Talk about the World sloshing around in US dollars created by a Fed FRB in what may become reckless abandon for loose goose Yellen monetary policy. Disclaimer Rick Santelli is a friend. 97.20 is not holding late in week, stay tuned more market opportunities coming down the pipe daily. 2% moves are now daily swings and nobody cares, 6% in a week, 12% in two, 80% in 16 months. No biggie right? Wrong. If you believe the Fed is creating inflation then we need to talk. Lowest VIX for two weeks to me meant it explodes higher after the pattern completes, then turns. I look for the turns that hold me levels and we put in protective stops and forget about it for a week at least. Does that sound familiar or interest you? Soymeal- $307.10 is massive support and the low, stop under? I give you the trading idea that I want to make you money so I can also. US Bonds- 154.08-16 important rsistance hit this week.
US dollar has waves of real selling depicted by diamonds in the very illustrative charts I have displayed here. Takes out a level and look how it cascades down to next level, any markets including yours. Not a lot of noise but specific wide levels the computers push from one to the next offer large 2-4% fast market swings floor trader’s look for. Avoid the chop and don’t be a sheep. Watch for my Walshtrading.com webinar coming out soon. I’m chomping at the bit with market color you don’t have available to you. I will be doing voice updates daily, maybe more because the wheels are coming off the buggie in swampland WA. and they hate the new Trumpbuster in town.
I hope to hear from you if your serious and just need great levels and ideas. Tudor hired me because I caught the 1987 crash. Let me find you some crashes both ways. NASD anyone?
Have a great weekend while the President is out of the country,
Alan R Palmer