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.
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.
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.
What if the ‘imminent collapse’ of the dollar is overblown by about 50 – years?
According to this just out, on private gold-filled currency, the article states average life of a fiat currency, is four generations. It goes on to say there are exceptions like the British Pound, continuing on even after hundreds of years.
The Black Swan
In Taleb’s book ‘The Black Swan’, he says it’s an event that nobody expects. It has long lasting repercussions and permanent change.
However, what most if not nearly everybody ignores or leaves out, is his alternate definition. That is:
A Black Swan can also be a future event that’s widely accepted as fact, that does not happen !!!
Is that where we are with the U.S. Dollar?
Even though the dollar has not collapsed and in fact, has rallied as we’ll see below, the ‘collapse’ talk continues unabated.
It’s easy to talk about dollar collapse.
It’s what gets the clicks. No matter that an actual collapse may be years if not decades away.
As of this post, how many ‘monopoly money’ YouTube videos can be found? Seems like it’s the same number or more than, ‘gold to skyrocket higher’.
Well, so far, gold has not skyrocketed higher.
On top of that, this site’s even provided an exclusive correlation that gold’s moving inversely to corn.
See ‘Insight Note‘ at the end of this post.
Ever since the ‘Derecho‘, it’s never been the same.
Back to the dollar.
No doubt, the dollar was whacked over the past trading week. Let’s take a look at what the UUP, price action is saying about itself.
Dollar, UUP, Weekly Chart
The unmarked chart shows the dollar oscillating, testing support for six-months at the beginning of 2021.
Then, in mid-June ’21, UUP pivoted decisively higher (gold, GLD, pushed lower) and never came back to those levels.
Of course, this past week The Usual Suspects were out talking about the dollar and ‘monopoly money’.
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
It’s been a strange coincidence over the past year or so, ideas presented on this site make their way to certain YouTube sites either in the titles, or within their content.
The timing of this phenomenon, that within a day or two, ‘post it first here, see it on YouTube there’, has occurred more times than one would consider as just ‘coincidence’.
Admittedly, the insights (making their way to certain YouTubers) have not been exclusive … that is, until now.
Recognition of the Gold/Corn inverse correlation, first posted here, is unique to this site.
As far as is known, this correlation has not been presented on any other financial site or YouTube channel or any other medium.
It may be an important data-point and map into this site’s long-time premise; it’s the corn and the grain first, then gold and silver (not advice, not a recommendation).
For more detail, search for Genesis 41.
When ideas from others are incorporated into the analysis presented on this site, full acknowledgement of the source is cited.
As Dr. Elder said in his book ‘Come Into My Trading Room’:
“I have zero respect for thieves”
He’s talking about the theft of his book title: “Trading For A Living”. He goes on to say, (paraphrasing)
‘Do you really want to use market analysis or input from someone that can’t think for themselves?’
Therefore, this footnote is authorizing the further use of the Gold/Corn inverse correlation by others in the industry if they so choose with the following caveat:
If one of the sites monitored (or some other media) uses this exclusive insight, and does so without referencing the source, it puts this author in the unenviable (but not unfamiliar) position of calling out the thief by name … not unlike what Stew Peters is doing (to the hoax/genocide perpetrators) on his broadcasts.
This market environment’s providing a fantastic public service:
It’s separating out the hucksters, the shysters and the otherwise incompetent from those who are, or who are striving to provide a service or useful insight.
The general investing public may find out soon enough, they’re on their own. Maybe unbeknownst to them, they’ve always been on their own.
What we’re looking for here, is some kind of Jimmy Carter type stunt where corn exports are halted in the name of ‘national security’ or some such thing.
More detail on the Carter grain embargo at this link … scroll down to No. 12
Of course, if that happens, corn is likely to crash (like it did last time) if only temporarily.
More Is Less
A corn embargo means more corn for us, right?
Remember, fertilizer prices are sky-high.
Elevated corn prices (like now) might just cover the cost for the farmers … maybe.
A corn crash in the commodities would likely mean even less corn gets planted … maybe none at all.
Enter, The ‘Bought And Paid For’
It may be that easy (as above), or get complicated because a major consumer of U.S. exported corn, is China.
Exports to China over the last year have literally gone off the scale. Add to that, China is the number two holder of U.S. Debt.
So, one can already see where this may be going.
After the initial fake panic where the politicians realize there’s a crisis (that part being real), which they themselves created, they’ll likely pontificate about halting exports for just long enough, to have farmers throw in the towel with no spring planting.
After all of that, and let’s not forget special investigative news coverage about ‘how all this happened’; blame it on climate change and then keep everything the same.
Exports continue (to China) as much as possible and the U.S. citizens starve … literally.
By the way, go to time stamp 24:04, at this link and look at the clouds in the upper right. For those awake, it’s clear; right angle, cross-hatch pattern.
Right angles are not a natural phenomenon. Whatever climate change there is, is the one being created.
When Corn Takes The Dive
If or when corn takes a hit, price action itself will define the correct trade action.
So, let’s be ready and not surprised, if we see corn in chaos.
If transportation is shut down as a result of cyber attack, fuel pipelines off-line, no grease to lubricate the wheels or any number of other (planned … and don’t think there’re not) events, the last thing that’s going to help get anyone through, is a ‘stack’ of inedible metal.
It’s no secret this site’s been using the Biblical precedent of Genesis 41.
That is: Grain and Corn come first … then gold and silver.
The ‘stacking’ public has got this message reversed. Of course, this is not advice or a recommendation.
However, for those that can see, it’s so obvious the goal is ‘controlled demolition’ of the supply chain. All of it.
We’ll put everything back to ‘normal’ if you just get injected.
Meanwhile, biotech IBB, and SPBIO, have both posted a new daily low.
IBB is poised to penetrate the resistance area identified in this update, and come back to test the wide bar.
If that happens, we have a Wyckoff up-thrust in play. More analysis of biotech to follow.