While the world is crying deflation we have sugar, corn and other soft commodities all up +10%-15% from their lows of 2 months ago. A solid downtrend that lasted a number of years has recently broken and has since stair-stepped up into a familiar pattern. I wont post all of them but soybeans has just confirmed the same pattern as of yesterday (chart below)
The newish USD Index downtrend we first found 2 months ago was the first clue and now with equity markets tanking it’s just more confirm that the USD strength that has destabilized the world economy is on it’s way out – Fed cannot raise.
What’s going on in soybeans is what i am seeing across most soft commodities
Resistance becomes support, then a large move up with a subsequent return back to confirm the new support.
Corn and sugar both ahead of soybeans by about 3 weeks. I got long corn 2 weeks ago and soybeans yesterday.
Here’s soybeans just at the sweet-spot now. Old resistance should now become support.
The best charting teacher I know: