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Anyone been watching July Soybeans
lately? Last week, they were on the verge of breaking out above the
neckline of an inverted head & shoulders. Tuesday and Wednesday, rumor
has it the fund traders got nervous about no follow through and they
tanked. Today, they are right back to the neckline.
That's the quick background summary.
Soybeans are now near an important juncture
in both price and time. Price wise, we have July Beans at the 450
neckline. Time wise, Mercury, planetary ruler of Soybeans, will be turning
Retrograde on June 4 before Monday's opening. Some of he list veterans
(someone on the list more than two weeks) may remember that I posted similar
information for February 26, which was a low preceding one of the better Bean
rallies of 2001. Mercury Retro is usually a high (observation over 20 years) but
it can and does invert.
However, the Feb. 26 example was not a
very good example of an inversion. The rally only went about 30 cents
and then failed. Usually when an inversion low is made on Mercury Retro,
the law of exception takes hold. The law of exception is one that was found by
Astrophysics when studying the distribution of energy and matter in the
Universe. This says that the rules are usually followed, but when the rules are
not followed it is cataclysmic in proportion. (If you apply this one rule to
whatever your trading approach is, it can be the difference between huge success
and failure).
I have no scientific percentages on Soybeans
and Mercury handy. I have observed Soybeans in relation to Mercury for about 20
years, i.e. about 4 Retros per year times 20 years.I have nailed some very good
turns on this in the past. (You don't do this blindly. The market has to set up
correctly to do a trade The planets only act as a catalyst.) My unscientific
forecast is that there if Soybeans have a
big rally between now and Monday's opening (another 30 - 50 cents), that should
be a high. However, if they pullback or go sideways and then start rallying on
Monday, there could be a very explosive rally. I recall another June, back
in the 80s, when Beans made a low on Mercury Retro. They rallied about $3 in
three weeks. That translates to a $15,000 potential profit on approx.
$1,500 margin. Of course, that was a rare exception.
Past performance is no guarantee of
future results. Futures trading requires substantial risk, almost as great as
trading some stocks. Futures trading may cost you your house, your first
born, your family, your car, and your dog. <FONT face=Arial
size=2> This is strictly for fun and educational purposes
only. POSITIVE suggestions and questions are welcome. All others, please
hit delete.
Soy Veyingly,
Norman Winski
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href="mailto:nwinski@xxxxxxxx";>nwinski@xxxxxxxx
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