Tuesday, August 31, 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 bag holders 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

The 08/25/21 Grains Review specifically addressed the weekly price and time cycles for corn, beans, and wheat.  This was not a new discussion.  It's been on the table for many weeks.  Weekly cycle readings above 2 are rare. Above 3 are extremely rare. What does this mean?  The odds of weekly price and time cycle reset are high. This usually comes as the daily and weekly fall out of alignment against the primary trend. This is the definition of cause build, consolidation, or corrections.

We also wrote on 08/25/21 that,

Corrections can vary from sharp, elevator-shaft declines to grinding sideways action, or running corrections. What's odd is the surprising strong bullish energy build in corn and beans as the weekly time frames are pushed to the limit.

The bullish energy builds found in corn and beans have not gone away. We'll get another energy reading on Friday. Energy is an important concept in the Evolution of the Trade, but it doesn't always have an immediate influence on price. Short term price action can dominate longer-term energy builds. Assuming that they don't matter, or matter over the intermediate- to long-term, is a mistake. If the energy build doesn't come down (dissipate) from current levels, the invisible hand is saying watch out bears.

Grains have been a hot topic, but there's certainly less extended plays in the Matrix right now. Natural gas, coffee, and Bitcoin to name a few.

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