| Wheat: A FABULOUS upside breakout
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This chart says it all. A very very nice upside breakout. Don't get me wrong - this can fail - 70% of breakouts fail and morph into larger patterns. But, as far as breakouts go, you can't ask for anything better. Any pullback or dip should be bought. There is a good chance that this commodity run another 100 points (5000.00 per contract) to hit 800 or so. You're going to get some scary flushes along the way but those will be buying opportunities. |
| S&P: Notes
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The ES/S&P have closed for 6 consecutive days below the open. Based on a simple backtest, this has only occurred about 9 times over the last 10 years. On a theoretical basis, if you purchased the OPEN ever time after this event, you would have an 80% chance of being in a profitable position 3 weeks later. While 9 occurrences is not a statistically valid sample, I would be looking for a short term bottom to form soon and the market to be higher three weeks from now.
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| The Trade(s)
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Buy July Wheat on any pullback or sell off. That's as simple as it gets. Because we can't forecast where the pullback will occur, we're unable to offer suggestions on risk levels. But, you can be sure we'll be watching this market in real-time and calling trades in it during the trading day in our beta real-time chatroom.
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| More Markets
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If you'd like coverage of more FUTURES markets, please join our beta program. Join us at http://www.structuredmarketseducation.com. We cover all the major US futures markets including the Metals, Grains, Softs, Indices, Currencies, Meats and Interest Rates. We occasionally cover some foreign markets such as German Dax and Bunds.
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