Corn moves higher and higher today. Prices continue to set new record highs, even more than other grains. After three days of near stagnant activity in the grains complex, it was time for bullishness to reemerge, if the grains superbull was to continue. We are seeing that now, and particularly with gold.
The second chart shows the daily chart for corn. Note that the Klinger volume indicator is still bearish. This is why the Klinger indicator must be combined with a good momentum and/or trend indicator like moving averages. Stephen Klinger, the originator of the Klinger indicator concept, says that the Klinger indicator is most effective when trading in the direction of the dominant trend. It's beauty is that it is a true leading indicator, so it gives a good "heads up" for when sentiment is weaking in the existing trend, or when sentiment is changing toward a new direction.
Tuesday, January 8, 2008
Corn: grain gold
