Charles B. Schaap
Nov. 17, 2008
Focus: Uncertainty in the Grains
One thing is for certain: there is uncertainty in the grain markets. For the last five weeks, grain prices (corn, wheat, soybeans) have traded sideways in a range (daily chart). Uncertainty results in a lack of commitment by traders who are waiting for a change in the balance of supply and demand. Chart indicators lose their effectiveness during low volatility range contraction, and the best approach is to wait for price to declare a direction. Eventually, there will be price expansion and a breakout above or below the
trendlines
which define the range. Be certain not to miss it!
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 .