Corn & Wheat Retest & Hold Lows; Increase Potential for May/June Rally. What Does This Reveal About 2019/2020 Food Crisis Cycles?
Corn & Wheat Retest & Hold Lows; Increase Potential for May/June Rally. What Does This Reveal About 2019/2020 Food Crisis Cycles?
05/08/19 Weekly Re-Lay Alert – The China Syndrome: “Exactly 40 years after the movie of that name (dealing with a potential nuclear meltdown), the markets are confronted with a different kind of China Syndrome – one that involves the potential for a trade war meltdown.
[Not to be lost in that discussion, two weeks after the China Syndrome was released in 1979, the Three Mile Island nuclear disaster occurred. Is it ironic that a pair of nuclear challenges – Iran and North Korea – are now injecting uncertainty into the markets, one 40-Year Cycle later?]
If one were to rely on the latest rhetoric, it would appear the trade war is about to be ramped up… dramatically. However, the rhetoric rarely reflects reality in this administration… so there is still some uncertainty.
That does NOT mean the tariffs will not rise to 25% on Friday or that the trade war will not be escalated… but the majority of the rhetoric is usually for negotiating.
So, where does that leave traders?…
Soybeans, Corn & Wheat remain divergent with Soybeans plunging to new lows as Corn & Wheat spiked lower but did not violate their recent lows. Soybeans & Wheat would show no signs of bottoming until, at the very least, daily closes above 857.75/SN & 448.0/WN.
In contrast, Corn is showing signs of bottoming and is strengthening the case for a rally into June (see May 2019 INSIIDE Track). However, it needs a weekly close above 373.0/CN to validate that potential.”
Corn & Wheat are reinforcing multi-month cycle lows (late-April 2019) after retesting support and reversing higher. The corroborates analysis for strong rallies in May/June 2019… and could be harbinger to Food Crisis Cycles forecast for 2019 – 2020.
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.