The system sold corn today, reversing a long position at the previous long entry (blue arrow) 3.82 as per the continuous contract day chart below. Today’s short entry is now aligned with the weekly MACD momentum differential, which re-initiated its negative cross-over dynamic back in the first week of March 15′, with accelerating bearish momentum over the past 2 weeks. Across the board grain charts are looking weak, feeling heavy. Wheat didn’t confirm the latest round of buy signals in Corn and Beans, its been Bearish in the system since Dec 12/14. So there has been intra-grain market divergences with respect to the system indicator. To boot, the system went Long the Livestock space, specifically, my preferred vehicle, Feeder Cattle, Mar 4/15 at the 2.06 level in March contract. The implied indirect correlation with Grains and Feeder Cattle seems to be re-establishing its bias (indirectly) with Long GF, Short ZC positioning. I’ve shown the 8 year performance in Corn below:
Corn SignalPerformance: 1 Contract ex-commission, slippage
Start-End: April 2007 – Dec 2014
Signals: 94
% Win: 41
Avg $Trade:509
Avg $Win/Avg$ Loss: 2701/1045 (2.59x)
Largest $Win: 10,675
Largest $Loss:-2662
Avg Holding: 20.4 days
Today’s short entry above in Corn.
Weekly MACD has turned -ve and accelerating over the past 2 weeks.
Wheat day chart above, showing the intermediate short position initiated Dec 12/14 at 6.09$, not confirming the most recent long entry in Corn, implying weakness in the Ag space.
Futures Trading 