- New Science in old markets -

Grain rally to falter, cotton and copper updates

Grains have rallied by varying amounts in the last few days and now Soy beans have made an extension top. All these markets made daily-scale compressions recently as reported in the May 13th edition:

Soy beans broke upward, wheat broke downward and corn re-compressed. This divergent behaviour seems to be about to end as the soy bean extension tells us that the rally there is over, as does the move back up in wheat prices to the compression, where we expect resistance. Corn is the unknown here as it has yet to break in either direction but it seems likely that it too will falter. If short wheat, stay short. If short corn, put a close stop but stay short. If long soy beans, sell and try a short hereabouts.

Cotton had also compressed at the same time. It re-compressed a day after the May 13th edition and fell immediately into a new downtrend. If short, stay short and sell rallies too:

Copper has re-compressed, but this new signal is at the same level as the last compression, so we don't need to change our advice. Stay long, with stops (preferably on a 'closing' basis) just below the compressions:

More soon.