Corn Looks Wilted - Exit

The top chart is the March Corn Futures 15 minute chart. The bottom chart is the Daily.

Today price rose until it hit our Stop at 427. The high today was 427 1/2. But of course no one out there is hunting Stops. It's just a coincidence. Yeah, right!

Then the "Crop Production" and "World Agricultural Supply and Demand Estimates" reports came out at 12:00pm ET. Notice the big drop. 

This had an important effect on the Daily chart. See how we closed well under the 8ema. So we should get back in right? Everything else being equal, I'd say if we get price follow through to the downside tomorrow then yes. However, things aren't equal.

On the Daily, notice how the candles are alternating green, red, green, red, etc. Its green's turn. Maybe that happens or maybe we get 2 greenies in a row, but its a consideration. Also, we appear to be in a bobble between the 8ema and the 34ema. I'd want to wait for a breakout from that consolidation. Then you have the 50sma coming up to provide additional support. Another thing to consider. Not to mention the weekend starts after tomorrow, and then there's the full moon and total solar eclipse on Monday. If you saw the correlations between these celestial events and the grains markets you'd stop laughing. It sounds crazy to the uneducated but the data shows its no joke.

Stochastics are mid-range. It really looks like we're in a sideways consolidation. Not a good condition for a directional trade. You might play bounces off the top and bottom of the channel back to the center (mean). But that's more of a day trade.

So, bottom line is to wait for a better setup.

The net on this sad little trade is:

Enter: 420 7/8 12/4/20

Exit: 427 1/8 12/10/20

420 7/8 - 427 1/8 = -6.25 * $10/pt (YC contract) = -$62.50

Its a loss but its a small loss. That's the game right? Keep your losses small and let your winners run.