Friday, 19 July 2013

E mini S &P: Double tops? and errrr a slight problem in the grains (Corn) ?

 Risk of double tops?  Probably not but nothing can be ruled out. At the least maybe we will see a vicious retracement to shake out some greedy longs who brought in the 80's thinking we would sail right up through the previous high at 1685.50. Its Friday so for me it has added volatility. It could even break upwards!

Here below is a simple study with most of the PF's from above shown plus their reaction lines. A study like this enables the viewer to understand price in relation to multiple action and reactions that are occuring at any given time.

 CORN: Recent crop reports led to a monstrous gap down last week... one reason you need more than balls of stainless steel  and deep pockets to trade even the mini contracts as an outright open naked position. Thats a big gap even for the grains... 100 cents from 670 to 570 and then lower!!

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