| Sat - 6/7/2015 09:19 As you can see from the charts above there's a HUGE gap in corn when N (7-12) went off the board and ZCU (7-13-2013) became the front month. That gap is from 5.50 to 6.84 you'd have to look at alot of charts to find a gap any where's near that big. This gap represents the massive inverse in the corn market in the summer of 2013. "The Cliff" inverse. End users were probably running on less the fumes because they knew they could buy it much cheaper down the road. Commercials most likely had NOTHING left in storage but the sweepings. Storing corn in a market like that as a commercial manager would most likely get you fired..... That market was telling the producers to sell corn ASAP NOT to store it. Maize and Ray were very vocal about this***** NOW at some point in time,,, that gap will be a *****TARGET FOR THE FUND MONEY*****just like 2.90 is now. It will take some major major news to get traders even talking about filling that gap. When we do get there,,, its probably not going to fill the whole thing on the first go round and be similar to the ZCZ 4.50 gap in from 2008 That 4.50 gap from the flush of 2008 was from 4.48 to 4.53, this will only show up on a ZCZ08 chart. June of 2009 corn traded to 4.50 on the nose and it took til September of 2010 (USDA losing 300 mb of corn in the June 30th report) The summer of 2009 orders @ 4.472 were like gold come fall. One could have adjusted your orders and sold the carry to March. This is one way gaps can be used in placing orders. Not sure but that Mother of all gaps will get the pitch fork guys thinkin ! ! ! ! ! HI Sat, Agree with most of what you said. But, I don't understand why the "mother of all gaps" will have the fork guys thinkin. The forks posted are the minor forks, not the bigger swing that the whole three year collapse has created. That "mother of all gaps" more than likely represents the zoom through balance. So, and sense the "fork guys" know that price always wants to return to balance - using other tools, we can make projections of rallies in the years ahead - like have been mentioned in previous months - because the market structure to create the rally already exists. And the rally that will happen when price returns to balance will be the next "tell" as to where the next bull market will eventually head. This is a huge formation, and although it's going to take years to become mature, it is NO different than watching a 100 tick chart. The fork guys understand that gap better than most - I bet. Take Care |
Elliot Wave corn
