Sunday, February 7, 2021

#Wheat Review $WEAT #ZW_F

Wheat Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Wheat's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

Subscriber Comments

Good morning Eric,

Back on Jan/31 you did a wheat review which generated a reset.

In this morning’s wheat review that reset went away.

I understand right now price continues to consolidate, which means patience and wait for a positive energy build.

What conditions changed for the reset to go away?

Trying to better understand how the matrix generates signals.

Thank you,

Rob


Reply

The latest wheat review video discusses the exact same setup in silver. The silver reviews (videos) provide a detailed discussion of what any experienced Evolution of the Trade silver trader knows as the "frustration" phase; many insert at least expletive before "frustration". F-ing is an excellent choice. There are numerous subscribers that could explain this setup and resulting emotional drain. Silver is grinding, chopping violently due to a large bearish energy build, a blocking dome, is sitting on the composite and primary trends like elephant resting on a step stool.

While wheat's setup shows subtle differences, it's very similar. I don’t want to give the full content of the review, but the following observation applies:

Buying or selling composite trend RESETs against a large, opposing energy build is more likely to end in frustration than success.


Look at silver and wheat’s energy build. A viable RESET, one with a higher probability of a success outcome, is more likely once the opposing energy build is dissipated (released). Energy prevents organization of the composite trend. Organization of the composite trend leads to acceleration. Skilled investors know how to recognize organization. Silver bulls chasing every RESET, while ignoring energy, have experienced frustration since the fall of 2020. The frustration phase, not necessary a backdrop mired by losses, continues until energy oscillates to bullish position. I warned that this process will take months.

I have no doubt traders try to force a bullish position down the throat of the invisible hand. This is not a high probability bet. Step back, write a song, play video games, run naked through the streets, or equivalent until the invisible hand is ready. The invisible hand is our friend, not enemy. Trouble is, we often cannot wait for it to be ready.

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