Commodities have been weak amid disinflation. But that has not stopped us from identifying certain positives in development.
Last week Crude Oil was highlighted for a potential positive trade by technical support, seasonal and sentiment combo. This week, another commodity takes the stage. I’ve been noting that Corn is on watch. Futures traders can trade the commodity. Amateurs like myself can trade the fund, CORN.
Here is a weekly chart of the futures, declining toward a clear support zone.
Here is a weekly chart of the fund, already in that zone.
Seasonally, Corn exits a bearish period (on average) now. On average, it turns up hard and stays up well into the next year. TDY = Trading Day of the Year.
Sentiment-wise, Commercial hedgers are net long after logically being net short into and at the previous highs. Why can’t logic work in the reverse direction? It can, with some patience.
Folks, anything can (and often will) happen in markets. But at face value, you don’t see such compelling confluence of indications very often. I am very likely going to add CORN either now (impatiently) or after a fill of the gap at 21.70 on this daily chart. But the gap is only .25 away, so…
