Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.
Though corn, soybean and wheat prices have dropped recently on forecasts of improving harvest conditions, their long-term trends, messages driven by price, leverage and time, defined and discussed in the COT Matrix for subscribers are sending or beginning to send bullish messages. A similar bullish message is appearing across most commodities.
Headline: GRAINS-U.S. wheat drops on weather forecast; corn, soybeans fall
CHICAGO, May 31 (Reuters) - U.S. wheat futures sank 3.2 percent on Tuesday, on track for their biggest daily decline in four weeks as forecasts called for improving harvest conditions for the winter crop good weather for spring wheat development."Drier weather begins to develop in the southern Plains starting this weekend to improve harvest conditions," Commodity Weather Group said in a note to clients. "Weekend rains and additional chances in the next two weeks are continuing to ease dry spots for now in spring wheat areas."