Lead by weakness in wheat, the grains bullishness didn't last long. One of the reasons why I use dynamic charts is that their effectiveness doesn't change, even if the markets do. The market dynamics are constantly shifting. New players are constantly entering the markets. New forms of trading (electronic), new technologies for trading, new indicators, new trading methodologies, etc., make the markets very dynamic and cause a constant shifting and sorting.
One of the main rules for trading that I always keep in mind as a trader is that "every moment in the market is unique". This is from "Trading in the Zone" by Douglas. This dynamic of the markets is a result of some of the shifting paradigms caused by changing circumstances that I have already mentioned. This is the reason why black box trading solutions and software often work for awhile, but eventually fail. They worked in a market that has changed and no longer exists.
Soybeans prices also have not been able to push higher. This is a sign of weakness that may lead to lower prices or a retracement.
Thursday, January 24, 2008
The Bull Didn't Last Long
