The Tea Leaves of CORN

Wyckoff … ‘Voodoo Science’

That’s how one YouTuber described the Wyckoff method.

Well, judge for yourself.

The analysis in question is linked here and the video is here.

If you look at the video closely, the area called out as the ‘secondary test’ can also be identified as a ‘spring’ set-up.

Note how that spring goes straight into an up-thrust; the one being discussed at time stamp: 0:34.

Wyckoff analysis is both science and intuition.

The good part is discernment, the ability to intuitively perceive events, is a God-given gift.

By definition, no amount of Artificial Intelligence can fully replicate that ability.

Of course, that doesn’t mean the people J.P. Sears refers to at time stamp 3:26, won’t try.

So, let’s move on to the market at hand; corn and more specifically, Teucrium tracking fund CORN.

CORN, Weekly

From the week of the Derecho breakout to this past Friday’s close, is a Fibonacci 89-Weeks.

Friday’s weekly bar was also a reversal.

The week closed with the highest net negative volume since the week of October 15th, 2021.

Looking closer at the volume, we see the large spike during the week ended March 4th, followed by successive weeks of elevated volume.

There’s also a terminating wedge with a potential throw-over; similar to what’s happening in Newmont Mining (NEM).

This market appears to be ripe for chaos.

Hitting The Mainstream

Adding to the probability for some kind of ‘event’, the price of corn is hitting the mainstream.

Throw in some real or fake news on food processing plants and the pressure for government to ‘do something’ continues to build.

Summary

The opportunity to go long CORN was way back at the Derecho.

At this point, prices are elevated to the point where risk appears to be increasing … potentially leading to a momentary price spike downward (not advice, not a recommendation).

If that happens, there’s likely to be chaos for several days as clearing firms either slow their payments, halt/cancel trades, or go bankrupt altogether … similar to what happened during the London Metal Exchange melt-down.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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