A Few Random Thoughts

Here are a few quick thoughts.

1.  The CCI is  not giving a buy signal on corn, but given the overall weakness of corn, especially with what happened yesterday, I would not consider selling corn.   We did have a hammer doji yesterday which I think means we are at the bottom of a daily cycle and should have some price strength for a week to 10 days at least.

2.  Notice how true to the fibonacci's corn (soybeans also) have traded. 

3.   The 200 day moving average has turned lower.  Longer term, I expect weakness to continue.

4.  The CCI is giving a buy signal on the bean chart, right at fibonacci support.

5.  Looking at the bigger picture, the JJG grain ETF which follows the basket of corn, soybeans, and wheat is at support. 

6.  The entire commodity complex looks similar for that matter.  Notice how well the CCI works to spot trend reversals?  Also, we are in the timing band for a bottom in the commodity cycle.  I will have more on that later.  Large fund traders look at that.

7.  The speculative money does not want to be in any commodities period.  That said, there is no denying that the grain markets are over sold by any metric you use.   The coldest spring in 24 years..... the latest start to planting in 17 years......  At some point, they will trade the weather.