While some of these explosive rallies pause, other areas of the commodity space are forming tactical reversal patterns.
Let’s check out one of my favorites,…
Corn.
Here’s the December corn contract carving out a ten-week base:
I bought yesterday’s close above 500’0. That’s our risk level. As long as corn trades above that level, I like it long toward the July high at approximately 570’0.
However, during today's session, I was abruptly stopped out of my position.
I’ll give December corn another shot in the coming weeks. But only if it’s trading above our risk level.
Commodities are working. I imagine corn futures and related stocks will also enjoy an absolute and relative bid.
It’s just a matter of when.
Stay tuned.
COT Heatmap Highlights
Commercial hedgers hit another record-long position in palladium.
Commercials are within seven percent of their most significant long exposure to the Swiss franc in three years.
And commercials hold a three-year extreme net-long position for Minneapolis wheatfor the third week.