China is on vacation for a week. The rest of the world, if they are Catholic predominantly will be pre-occupied for Ash Wednesday. All in all its a good week to sit back and chill. I think today we saw a short covering rally across the board. All the bearishness is the wall of worry we must climb in these stock indexes.
For what its worth, March Beans have bounced 66 cents from its low at 900 posted just 7 trading days ago. And yes, it was a 38 percent retracement, a Fibonacci retracement. Once again a self fulfilling number? Perhaps… but it works often enough to be something to always trade with as a target.
I am pretty sure when I mentioned 964 as a target to a couple of associates last week, I was met with a certain disdain. “Oh, you are a Fibonacci guy”, lol and of course my favorite, “66 cents is a long way to rally back” I wouldn’t be looking for that.
The fact is the Fibonacci’s work so well because 1) its simple and 2) every one focuses in on them. While every one else is looking as stochastics, and Eliot waves and MACD lines and all the other zillions of technical indicators, long term trend lines with 3 or more hits, along with Fibonacci retracments of 38 percent 50 percent and 62 percent, quietly remain valid technical indicators.
Next stop in the SH beans is 984. That’s 1/2 way back of the $1.75 flush we had which started in early January.
That is all.
“The Fibonacci guy”.
Good Trading
