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The Torch wrote:
> I usually don't look at the Grains but, I was doing
> some analysis and thought Corn may be a good short
> play over the next week or so. It had a low volatility
> reading, where volatility reverts back to it's mean to
> give a nice move.
> I was also looking at Soymeal, a long play looks good.
> Anyone out their have any opinions?
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I have the following Pattern Signals fired for today's trading (Wed.
10/20) in Dec Corn:
NR7 with an INSIDE DAY SIGNAL
This signal indicates that range expansion is highly likely.
If yesterday's high of 202.25 is exceeded then either buy the
breakout (aggressive) or buy the retracement to the breakout
(conservative). If yesterday's low of 200.75 is exceeded then
either sell the breakout (aggressive) or sell the retracement
to the breakout (conservative).
LOW RANGE CLOSE: 80% chance that today's
low will be less than yesterday's. Look for shorts.
Half Day Cycle Indicators look toppy (first attached chart, left side)
and the Low Range Close signal implies further downside. Yes,
Historical Volatility levels (first attached chart, right side) are
low, which tells us to expect range expansion and a pickup in
volatility in the near future. Although Half Day Cycle Indicators and
the Low Range Close signal are pointing towards more downside, its
best to play the breakout of the day's range rather than picking a
direction when volatility levels are this low. Price action relative
to the Daily Pivot (201^2) can often give you an early warning as to
which direction it should break.
~~~~~~~~~~~~~~~~~~~~~~~~
I have similar signals for Dec Soymeal:
NR7 with an INSIDE DAY SIGNAL
This signal indicates that range expansion is highly likely.
If yesterday's high of 156.8 is exceeded then either buy the
breakout (aggressive) or buy the retracement to the breakout
(conservative). If yesterday's low of 155.5 is exceeded then
either sell the breakout (aggressive) or sell the retracement
to the breakout (conservative).
Half Day Cycle Indicators appear as if a short term cyclical bottom
has just been formed (second attached chart, left side), but, again,
Historical Volatility levels are very low (second attached chart,
right side), so its best to play the breakout of yesterday's range.
Again, price action relative to the 156.0 DP can give us an early
warning sign.
Usual disclaimers apply. - futures trading can be hazardous to your
wealth.
Bob Hunt
THE PATTERN TRAPPER
E-Mail: RHunt.066@xxxxxxxxxxxxxxxx
Web Site: http://home.att.net/~rhunt.066
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