Friday, June 4, 2021

#Soybeans Review $SOYB #ZS_F

Soybeans 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.

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

Subscriber Comments

Hey Eric,

What constitutes a viable reset?

I saw your latest post and agree, the internals are lining up.

My system gave me a buy y’day and so far it’s working out well.

Does DI have to go above 65%?

On a side note, I don’t think you follow Minneapolis (spring) wheat, but keep an eye on it.

Severe drought conditions have that market running to the upside.

Potential for a lot more, although it’s a really illiquid market for a futures contract.


Statistically significant bullish and bearish energy builds are above and below 60% and -60%. As the 5/28 posted suggested, DI = 54% and DI2 = -14% would be strong enough to restore mark and generate a viable reset.

The Matrix is all above understanding. There's no understanding if you're buying because everyone else is buying. Not saying you are, but let's be clear about the setup the herd is chasing. Subscribers saw the composite trend reset 3 days ago (R+3 in the phase column). The reality of this reset was and continues to be Mid cycle.

I never like getting aggressive on resets unless they're designated Early. MID cycle designation tell us something is wrong, and that something is the weekly price and time cycles above 2 sigma. In other words, you've just entered a spitting content on an extremely turbulent and windy day. Beans' secondary trend is the most extended in the grain complex. Extended trends carry risk. If you're jumping back in the pool, understand exactly what type of pool it is. I can guarantee 99% of the herd buy beans doesn't care or know.

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