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Published 8/9/16 11:02 am central:
I have been keeping my eye on the Soybean Spread Nov 16 vs May 17. We have been in a downward channel as you can see in the chart below and have a strong TAS Navigator to this trend with newly formed levels. I have been waiting for us to move slightly higher to the previous POC Zone and off the most recent lows to look and sell this spread. Looking at the Nov Soybeans futures contract on a Daily chart you can see that this contract has rallied up today just under the $10.00 price Levels: This just happens to be the Top Zone on the MDA Daily SnapShot for Nov16 Soy Beans below. I am using this recent rally and hitting this top zone on the November Futures as a good timing to enter this short spread of Selling Nov16 and Buying May17
Click For larger Image:
November 16 Soybeans
Looking at the MDA SnapShot Daily Chart of the Nov16 May 17 Beans:
Click for larger Image:
Daily Chart Soybeans Nov16 vs May17 Spread
As you can see we are below the previous levels and had new levels newly formed. This is allowing us to have essentially to risk zones to choose from. Risk 1 @ 28 cents above the previous high and risk 2 above the newly formed top zone @ 20 cents.
Entry: 13.50 cents or better
I am looking to sell this contract @ 13.50 cents or better. The market just filled these prices. So you should be able to get this entry price or better.
Risk: With 2 risk levels on the board pick the best scenario that is right for you. I am will be using the initial risk @ 28 cents just to have stops in place for protection. If we have a bullish WASDE that could change things fundamentally we may look to adjust risk to the 20 cents for a shorter stop, but that will be a read as we have been in the spread for a few days.
We have a WASDE report this Friday, August 12th. This could add some volatility to the market and hopefully boost the downward momentum of this spread if it is favoring bears.
Info on WASDE
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading. Market Dimensions Advisory – Free Edition includes an email newsletter subscription. The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
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Market Action Scanner
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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