Corn tripped a faint buy signal at 544 5/8 ten days ago, the first since another signaled in May got stopped out a month ago. This is a bull market just waiting for a sign, any sign, that it’s safe to exit the lengthy consolidation that has tied traders in knots for the last five months. The rally is not yet impulsive on the daily chart, but we can use the reverse pattern to get long at or below its d=523 6/8, in the ‘discomfort zone’, since it is bullishly impulsive on the hourly chart. Notice that the c-d leg of the pattern consistently signaled winning ‘mechanical’ shorts, but that traders would have endured considerable pain before cashing out. ______ UPDATE (Oct 12, 9:49 p.m.): Corn made a very tradeable low at 519-2/8 before leaping to a so-far high tonight at 525-2/8. The trade suggested above could have been worth around $200 if you caught it with a tight rABC. I am holding a single contract myself, the last of four, for a swing at the fences. ______ UPDATE (Oct 13, 4:12 p.m.): No home run this time. I exited the position overnight after the futures went into screw-the-pooch mode for a few hours before plummeting. The realized gain on four contacts was $388. Corn looks like hell, so I won’t suggest anything new.
CZ21 – December Corn (Last:524.12)