CORN … On The Edge

Waiting, For The Next Chess Move

In chess, most (if not all) opens and responses have a name:

‘Danish Gambit’

‘Cochrane Gambit’

‘Petrov Defense’

‘Scotch Game’

‘King’s Gambit’

It’s been nearly one year, since discussing a potential corn trading strategy; during that time, the strategy remains in effect (not advice, not a recommendation).

We’re still waiting for a chess move from the ‘other side’.

Keeping in concert with traditional opening moves as named above, we’re going to name our set-up as follows:

‘Potato Head Gambit’

That is, an ‘administrative’ move which temporally puts the corn futures market into chaos. A move similar to Carter’s grain embargo of the 1980s.

The weekly chart of tracking fund CORN, shows us something’s about to happen.

Either we get a breakout … or breakdown.

Teucrium Corn Fund, CORN, Weekly

The ‘Derecho‘ is marked as it was the kickoff to the current structure.

A wedge has formed.

A breakdown puts CORN, at a measured move in the vicinity of 18.0; a breakout to the upside, measures approximately to 38.0.

From a trading perspective, a breakdown is preferred.

Price action pushing lower to the 18-area, puts CORN below well established (support) lows of 2021.

A penetration of those lows would (potentially) put CORN in Wyckoff Spring Position.

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

Corn Flattened

Ten percent of the U.S corn crop was instantly wiped out last week during what’s described as an inland hurricane.

The video here goes into more detail about correlating events.

iStock-1019396932

To limit the food supply even further, driving prices higher under the guise of inflation, the ‘speck’ (time stamp 6:00) has invaded 100% of tested agriculture workers in California.

The corn ETF mentioned at Time Stamp, 4:16, in the linked video is shown below:  CORN is the ticker symbol.

The ‘derecho’ breakout is clear.  Currently, CORN price action has retraced slightly and is testing support levels.

2020-08-19_9-20-04-CORN-Daily-4-bar-notes

In separate markets, biotech (IBB) has posted another sell, sell-short signal with this session’s new daily low (not financial advice).

Silver is reversing as expected.

Whether or not this is just the beginning of a long down move to form new lows (for SLV), is unknown.  Of course, such a position or thought is, completely opposite the consensus view.

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.