It seems that we have some profit taking across the board. After ten to twelve straight days of rally, we were overdue for a pullback. Its a natural ebb and flow, and for now,it looks like it should be a typical market re-trenching. Not so much fun if you just got long and are looking at losses.. Short term or not, losses are no fun, and not why we are trading.
I did some basic technical analysis, my favorite type.
Overnight and so far today we have had lower trade across the indexes as well as the grains.
Support levels should be at the half-way pullback of the recent 12 day up moves.
To begin with, the stock index numbers are as follows:
In DJZ the Nov 2 low was 9596. The high of the move was 10,427. A 831 point rally over 12 days. Typically we should find support half-way back, which is 10,012.
In SPZ, the Nov 2nd low was 1,026. Monday’s high was 1,122.5 A rally of 96.5 handles in 12 days. Half-way back is 1,072.
In Jan Beans, we had a 12-day 98 cent rally from the Nov 2nd low at 951 to yesterday’s high at 1048. Half-way back is the 1000 level.
In Dec Corn, we had a 12-day 50 cent rally from 359 on Nov 2nd, to yesterday’s high at 409 1/2. Half-way back support is 384 1/4.
Finally in Dec Wheat, Our Nov 2nd low was 488. Yesterday’s high was 583 1/2 for a 94 1/2 cent rally over the 12 days. Half-way back support is at 534 1/4.
Good Trading
