Bullish Wheat, again?
Last week both March Soybeans and March Wheat closed on the daily and weekly lows. While this would appear very bearish to most traders, the signal set up a major COT buy signal. This is not my recommendation as I never trust signals given by anything but the charts. What I want to see is a key reversal day in which the market gaps down at the open and then retraces to close at least above of Friday’s high and preferably last week’s high of 488.5 in Wheat and 936.75 in Soybeans. This may not happen as it would be ideal, but I’ll take a “close as in hand grenades” to see if the market has increasing potential to the upside. What normally happens (if anything is normal anymore) is a surge off the bottom with a pullback to test the low. This is when the charts come into agreement and there is a fresh cross on the Daily chart. This is what I am waiting to see. The move following this change in direction surge can be the strongest and fastest moving of all the moves. The risk can be a little easier to calculate, and I think it is worth the wait. As I am watching, the market in Wheat has bounced up 17 cents…….
