November soya bean futures made a daily-scale compression yesterday and may be breaking downward from that signal today. It is too early in the session to state that this is a selling opportunity in this volatile market, but if prices are still below the low of yesterday's range of 954 1/2 near the close today, sell short:
Elsewhere, US stocks are still range-bound and still making compression signals at a daily scale in some sector indices. The main 'whole market' indices have not made new signals lately but there is the possibility of an upward break from the existing 'senior signal' just as there was last week - namely the compressed condition in the New York stock exchange index. This was poised to break upward last Friday but didn't and now it is poised again. We are watching and will recommend long positions if that break is confirmed by the close. An update:
As with any compression break, there must be some common sense when trading. If a break is tentative, don't follow it. If the break is enormous, don't follow it. If you think the market can't possibly reverse from early in the session and negate a potential break, think again - markets typically become more volatile after compressions, so false breaks are common (say, down first and then up) even on the same day.
We will advise,