How To Trade Beans
Soybean contracts from the Momentum-5
List are following through nicely on their biggest spurt year-to-date from Friday following the USDA’s estimate that the crop carry-over would be
smaller than anticipated and fewer acres were planted.
Soybeans
(
SN1 |
Quote |
Chart |
News |
PowerRating), soybean oil
(
BON1 |
Quote |
Chart |
News |
PowerRating),
and
soy meal
(
SMN1 |
Quote |
Chart |
News |
PowerRating) all rallied. The key is finding a method to get in
on such high-momentum markets. One way to get in on momentum moves is through
the Off The Blocks
entry method. Momentum is considered present if a market registers on the Momentum-5
List or the
New 10-Day Highs List (or on the Implosion-5 List
or
New 10-Day Low List for declining markets). In this simple method (for
longs), if a market opens higher and trades above the opening five-minute bar,
consider entering long. If the market gaps or laps lower initially, wait until
it trades above the high of the prior day’s last-hour bar before entering. This
will keep you out of the majority of days when a momentum market moves lower.
Shorts setups are reversed.
Basis August in the bean complex also rallied with beans
gaining 8 1/2 to 482 1/2, soy meal rallying 2.1 to 172.0 and bean oil gaining
.3900 to 15.7000.
From the
Implosion-5 List,
energies triggered out of their Off The Blocks entries after a gap up and provided
second chance entries on an intraday pullback to the lows of Friday’s last
hours’ ranges. August crude oil
(
CLQ1 |
Quote |
Chart |
News |
PowerRating)
closed .30 lower at 25.95,
heating oil
(
HOQ1 |
Quote |
Chart |
News |
PowerRating) sank .0075 to .7108, and
unleaded gasoline
(
HUQ1 |
Quote |
Chart |
News |
PowerRating) fell .0208 to .7148.
10-year notes
(
TYU1 |
Quote |
Chart |
News |
PowerRating) are triggered out of their Turtle Soup Plus One Buy
pattern and
September T-bonds
(
USU1 |
Quote |
Chart |
News |
PowerRating) rallied after sparking a same-day, Turtle
Soup Plus One buy setup. 10-years added 16/32 to 100 29/32 and the 30s gained
19/32 to close at 100 29/32.
In the softs, the Turtle Soup Plus One
Sell pattern in sugar
(
SBV1 |
Quote |
Chart |
News |
PowerRating) really hit, with the
October contract losing 6.41%.