Corn Crash!

ess1096 · Jun 26, 2008

Quote from Rtrader2525:

Im looking at a corn chart and technically it is looking good, not overbought, stochs or rsi. Bollingers look good. When you guys trade thesse markets technically what do you use? (im newer to TA)

I've spent the past few years studying all I could learn on TA and the funny thing is that all I really use now is support/resistance and volume. Just watch the price and see where the volume comes in on both the buy side and the sell side.
One thing to remember.............Margin calls are not based on rsi, stochs and bollingers. Margin calls are based on price.
Good luck.

ProfLogic · Jun 26, 2008

Quote from Rtrader2525:

Im looking at a corn chart and technically it is looking good, not overbought, stochs or rsi. Bollingers look good. When you guys trade thesse markets technically what do you use? (im newer to TA)

I use:
Prime Fractal Increments of Constant Volume Bar Charts
One Fractal for Strength & Swing Trading, next slowest fractal for Intraday Trading Decisions and finally the next slowest fractal for Intraday entries/Exits
Fractals create fixed & real Support and Resistance levels without the need to calculate them.

Rtrader2525 · Jun 26, 2008

oh lol I know man. I have traded grains for about 4 years now, and I am just starting to trade techincially. I am still a fundamental trader but would like to add a little you know? So you just watch price and volume. The more I study TA the more it fascinates me. Price action tells you absolutely everything! It's pretty cool, anyways i am still flat. you guys catch any of this

ProfLogic · Jun 26, 2008

Quote from ess1096:

I've spent the past few years studying all I could learn on TA and the funny thing is that all I really use now is support/resistance and volume. Just watch the price and see where the volume comes in on both the buy side and the sell side.
One thing to remember.............Margin calls are not based on rsi, stochs and bollingers. Margin calls are based on price.
Good luck.

Well stated.

simpleton · Jun 26, 2008

Quote from Rtrader2525:

Im looking at a corn chart and technically it is looking good, not overbought, stochs or rsi. Bollingers look good. When you guys trade thesse markets technically what do you use? (im newer to TA)

I use statistics and volatility analysis extensively. I don't normally go against a trend but my analysis showed it being a good risk to reward trade. That said, it's not the easiest strategy to stomach but historically I've made much more on these types of trades than trend following ones.

ProfLogic · Jun 26, 2008

Stop with profit & Reverse on front month eCorn. $.28 new profit.
Other long Position and Swing Trades making new highs.

Subdude · Jun 27, 2008

Corn is just barely above mid-June highs now, soybeans is pretty close to making a similar double top. All these look quite bubblish, despite extensive field damage in Midwest. 25% gain in a month? Are we to believe a quarter of world's corn supply is gone, based on this trend? Give me a break.

I was considering going long on the fundamentals, but the market has clearly overreacted to the news as usual, so this doesn't seem appealing anymore.

Hang in there, shorts!

simpleton · Jun 27, 2008

Quote from Subdude:

Corn is just barely above mid-June highs now, soybeans is pretty close to making a similar double top. All these look quite bubblish, despite extensive field damage in Midwest. 25% gain in a month? Are we to believe a quarter of world's corn supply is gone, based on this trend? Give me a break.

I was considering going long on the fundamentals, but the market has clearly overreacted to the news as usual, so this doesn't seem appealing anymore.

Hang in there, shorts!

I've still got my core short in the 760's avg . Looking for the spot to add more to this. Been able to offset this move with my long in wheat but not fully. It's always scariest at the top or bottom. My most exciting position at the moment by far!

debra1970p · Jun 27, 2008

Quote from simpleton:

I'm trading the September contract. I just look for the one with the bigest open interest and highest daily volumes.

December Corn seems to have the largest volume.

By the way, looks like December corn might make a key reversal today...then again, who knows.

Bingoking · Jun 27, 2008

Be prepared for the USDA acreage report coming out Monday morning. There could be limit moves one way or the other. I'd be leary of holding a position past Sunday night.