Several delivery months of corn futures compressed on Thursday and may be breaking upward today – July is shown below. We have been calling for an end to the downward bias in grains for some time and this seems to be another clue that we are on the right track. It is difficult to buy it until nearer the close today as this we always need to see a ‘closing break’ but please watch carefully as the session unfolds. Another bullish commodity development has occurred in sugar, where multiple New York and London futures contracts made bottom extensions – March NY #11 is shown below. Buy now.
Elsewhere, there has been a blizzard of top extensions in US equity markets at both a weekly and a daily scale. The current up-move is on shaky ground but be very careful when selling short – further new all-time highs will come easily if these markets don’t drop soon. We expect a ‘decent’ dip in the immediate future but we will not be stubborn if it doesn’t happen within a day or so. We show only one example of these recurrent signals here – in a US mid cap index, at a weekly-scale.
Platinum futures have made top extensions recently. Gold made a top extension at the beginning of the month, as reported in the January 3rd edition but this only led to a flattening of the prior uptrend. This new signal in another precious metal might mean a more meaningful setback. We watch, as there will probably be some ‘churning before any down-move might develop. Again, please stay alert if you are looking to sell either Gold or Platinum.
