Soybeans are one of the most popular oilseed products in the world and are used in the manufacture of plastics, solvents and other industrial products. Additional uses include livestock feed, edible oil and other foods. In the U.S, soybeans were not used as a food product until after the 1920’s. However, soybeans were essential to Asian cultures for hundreds of years before Western cultivation began.
On Monday the stock index futures ended their Chinese water torture selloff and stage a good Taylor Trading Technique Buy day rally. Yesterday was the Sell day in the cycle. That’s what yesterday looked like — the two sided trade of a distribution day.
The spread market between these two feed substitutes has been a swing trader’s dream. The tight, consistent ranges and the support and resistance on each side of the trade have provided those involved with a great trade setup for months. After the recent USDA report, Corn has taken its turn as the whipping post in… Read more.
The corn trade has been incredibly complicated as of late. The situation is one that projects both the most bullish and bearish of set ups, simultaneously. So what is anyone involved in the grain trade supposed to do? What do we focus on going forward that will project prices higher or lower? If market participants… Read more.
A main tenet of the Taylor Trading Technique is the idea of the “violation” before a TTT trade signal – on a TTT Buy day we anticipate an initial move below the previous low, on a Sell Short day it’s an initial move over the previous session high. We then wait for the market’s trend to reverse and to enter when the momentum is heading in the forecast direction.
When talking about Wheat futures, it is important to understand that there are three distinct contracts. Not only are the three contracts based on different Wheat products, but each trade at three different exchanges. It’s important to be aware of the contract differences as the price patterns may also differ.
Corn and Wheat futures had a good rally off midweek lows. After two days of rally the Taylor Trading Technique was looking for a Sell Short day today. The anticipation aspect of the TTT was helpful this morning.
In last night’s Swing Trader’s Insight update my comment for the gold futures was “Buy day, careful”. By the Taylor Trading Technique today is a Buy day meaning we should look for an initial move below yesterday’s low (the reference price) and then a rally back over it.
I probably sound like a broken record for writing this but I like to trade crude oil futures when the weekly EIA crude oil inventory report is released. It has the potential to cause sudden market move but is often less likely to cause the crazy overshoot reactions of a once a month report.
Yesterday stock index futures staged a rally out of a breakout setup, closing near the session high. Following a breakout rally the Taylor Trading Technique tells us to anticipate a Sell short day; there were a number of interesting factors in today’s setup.