The above chart is the ES daily. The ES has rallied sharply recently, but I am expecting this is due to short covering rather than strong buying because the volume has been decreasing during the rise inside the channel. I’m watching the levels at the March and June lows for a possible short position.
Above is the Soybean daily chart. Soybeans recently broke out of the long trading range. I think there can be a buying opportunity in ZS on a pullback.
Interesting observations on the soybeans. But the problem is commodities cannot possibly rally with the exception of gold and silver when stocks plunge due to deflation. The only way would be a hyperinflationary depression. In that case, stocks would not drop neither. It’s really difficult to bet anything one way. One really has to go both ways i.e. long and short.
Good point. With current strength in commodities (due to season and interest), I’m looking at this just as a short-term trade.