Wednesday, September 7, 2022

#Corn Review $CORN #ZC_F

Corn Review
Trading noise, the random movement of price over the short term, does not control trends, cycles, and profits. The majority, an emotionally driven group focused solely on price, often interprets it as meaningful information. This leads to confusion, frustration, missed opportunities, and leaves the majority as the bag holders of trend transitions. The Evolution of the Trade helps investors stand separate from the majority.

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

Subscriber Comments

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The Series 1 Corn Report 12/19/21, a series of videos, extends the discussion. Please watch it. This could easily get out of control for the bears fighting the primary trend.

The majority - Ag Twitter, CNBC, Main Street, Wall Street et al., is turning bearish on commodities, Ags, and grains. We don't follow acreage, crop ratings, weather forecasts, USDA reports, local insiders, or other fundamentals. The invisible hand is discounting domestic and international events that the majority cannot track. The overall inability to read 'inside information' often leads to unexpected shocks and surprises.

The bears believe that today's rally is nothing more than a dead cat bounce. Cycles of price, time, and energy cycles drive trends. They are controlled by the invisible hand, not the majority's opinion.

The correlation between the price of corn and oil is strong. 1 is perfect correlation. The correlation between corn and oil was 0.46 from 1860 to 1900. It rose to 0.86 by 2000. Nearly 23 years later it hasn't changed much at 0.85.

The tightening relationship between corn and oil makes the recent Commodity & Oil Report update not only important to oil but also corn. Corn has been the leader in grains. Either corn is going to pull oil higher, or future weakness in oil spells trouble for grains.

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