Monday, July 26, 2021

#Grains Review #Corn #Soybeans #Wheat #Ag

Grains Review
Those that view the message of the market on a 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.

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

Subscriber Comments

Hi Eric,

You have been commenting a lot about the grains lately which I greatly appreciate. I sense you are looking at a set up that contradicts the noise in the market of record US crops and slackening demand (China’s PR machine in full force over the past week).

The fundamentals in corn, wheat and soybeans remain very strong as demand continues to outpace supply on a global scale….the rest is noise as you say.

Any insight into the grains you can share with me would be greatly appreciated.



What's taking place in the grain/foodstuffs is serious. The 'evolving' trends are as much about profit as influencing social order. Discrete discussions behind the scenes focuses not only on present but also future 'fundamentals'. The discussion is increasingly tilting toward human intervention rather than weather patterns and natural cycles. These types of discussions, many of which I do not share, would be classified and discredited as conspiracy theories rather quickly.

Over the years, though I talk a lot, I have learned to listen to the invisible hand rather than opine. It's not easy to do, and is the main reason why the Evolution of the Trade (EOT) was created; I take the EOT very seriously, and I have no doubt you have come to do so as well. Something is not right, and no one I know, other than the invisible hand, has the security clearance to differentiate the truth for lies (fake news). All we (the peons) can do is listen.

If grains are headed down, they will decline during seasonal weakness AND not be accompanied by bullish energy builds. Every subscriber can and should track this in the Matrix. Follow the seasonal trends for corn, soybeans, and wheat. Price directed by natural cycles should follow semi-predictable patterns. If something else is up, price will behave in an 'unexpected' manner. It won't be weak as expected, and the invisible hand will accumulate (generate large bullish energy builds) despite favorable weather and crop reports.

You described it as noise. This description is absolutely correct. We use the Matrix and the EOT to follow trends through the four phases. Grains currently trade within the Alignment and Energy Phase. Tune out the chatter and watch energy (see chart below). If energy continues to rise and price falls within cause building, the invisible hand is accumulating. We don't know why. Explanations often come later, but during transitional periods they can be lost or never come. This is the only way to survive in this business.

Where does energy lie? DI and DI2 of 20% and 6%, a slight drop as prices rose last week, defines a bullish bias. Does the invisible hand buy the dip? We'll see. If it does, DI will rise, and WA will stay low or fall. We stay focused on the EOT and try to ignore the inane chatter disguised as facts.

Pass this information to everyone you know, and encourage them to understand the invisible hand. This is more important than fame, glory, and subscriptions. We are approaching a unique time in history.

Grains DI (Line 62 columns W-AA Trends Tab Matrix)

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