The grains drifted lower last week amid a slumping world economy and a worsening U.S. stock market. Also, a rising U.S. dollar is putting downward pressure on commodity prices. Wheat dropped 15 2/8 points last week to close at $5.19 2/8. Corn fell 13 point and finished the week at $3.50 2/8. Soybeans was the biggest loser; it slipped 93 points to close at $8.62 4/8. Soybeans gapped down on Tuesday after having crossed under the trendline a week earlier. On the gap down, the –DMI was dominant and ADX was rising; this confirmed strengthening of the downtrend. Price retraced back to the 20 SMA on Thursday, setting up another shorting opportunity.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com.
