Wheat: Looking For a Trade

It’s been a while since wheat and more specifically, WEAT has been covered.

The potential hyper acceleration from the last report has not materialized … yet. 

What we do have, is price action setting up for a potential trade.

Well established support is shown along with the location of the 38% retrace area.

Next crop report is due out on Monday, the 2nd, but here’s the catch.  The report is to be released at 4:00 p.m. EST; just as the regular session is closing.

It should be noted at this point in time, what’s in the crop report is (and will be) essentially meaningless. 

We’re focused on price action and that alone.

Fundamentally, we know that around 10% of the corn crop was destroyed by the Derecho. Earlier than normal record cold weather has moved into the crop producing areas.

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.

Wheat Accelerating Higher

The chart of WEAT shows we may be rotating higher … much higher.

The recent rate of the trend-lines is shown (below). If today’s action in the market moves higher, it helps to confirm the new trend-line.

Taking advantage of this move could be through trading the futures contracts.

Our example, is using the Teucrium WEAT fund to gain exposure.

More data on that fund is here.

As reported here, crop prices could spike based on several factors. 

Note at time stamp 10:18, it’s being reported the USDA is counting the corn crop destroyed by the Derecho as ‘yield’.  This claim has not been verified.  We’re letting the charts do that for us.

Wyckoff stated many times in his writings, there are thousands if not tens-of-thousands of analysts covering every conceivable sector of the markets.

Their collective decisions are reflected on the tape. 

Proper interpretation of that tape, can discern the result of their analysis and the most likely direction of the markets.

An expandable version o the chart is here.

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.