KCPO - Is This The Beginning of A   Big Bear  ? - 1/16/2012


Last week's long trade did not go far and I took it out when price went below prior day's low on Wednesday. I only went shorts on Friday when the Stochastic finally crossed down. The MACD has also turned negative.  I would add more position as when the Stochastic crosses down its 80's signal line. Place stop at 3225. I take note that the ADX is falling and barely above its 20's signal line, so be prepared that this may be another one of those short lived move.


 
The weekly chart MACD and Stochastic are still going up but the ADX continues to fall and it has now gone below its 20's signal line, The DMI is also wiggling like a worm, so these are telling us there is no trend in this market.

The  market is following the whole grains complex which has collapsed last week. This recent market movement is beginning to slap Jim Rogers on his face on his hype on high food prices. If come to being, this should be a good piece of news for the rest of us expecting food prices to come down again.