Soybeans

[torero]

	Quote:	notouch
	Corn hit it's 5% limit on Friday and gapped down again Monday. I believe it hit its limit again and is currently locked limit down so you can't sell. That's a bad situation for those locked in long positions.

Did anyone follow Wheat yesterday? Same thing, gapped down, then stopped and reversed. It hit a major support level and moved back up the rest of the day. I wanted to go long but wasn't sure of the lock limit concepts. Maybe you can shed some light. What's the max. percentage move up or down before the lockup takes place? Any examples we've seen lately?

[notouch]

The corn limit is 5% so if it goes down 5% in a day then it's limit-down and can't be sold. This happened on Friday and Monday but there was buying towards the end of Monday so probably that's the end of the limit down moves. Wheat wasn't limit-down but was pressured to the down side by the weakness of corn. They are of course highly correlated markets.

[cooter]

Actually the limits are 20 c for Corn, 30 c for Wheat and 50 c for Soybeans.

All traders should go straight to source itself....at the CBOT... to verify, and not rely upon anecotal reports or secondhand news.

Corn: 20/c CBOT - Corn Quotes Open Auction

Wheat: 30/c CBOT - Wheat Quotes Open Auction

Soybeans: 50/c CBOT - Soybeans Quotes Open Auction

Look for the section that says "Daily Price Limit".

Good trading, folks!

[torero]

So what's your opinion if for example wheat closes locked in limit down, what happens the next day? Gap down until it hits another limit down?

I've been watching the electronic session from 6pm-6am with pit time 9:30am to 1:15pm, very interesting time they set, they close 3 hrs before pit opens.

[cooter]

Pretty simple, really. Let's assume that you are daytrading, and not taking swing positions overnight.

If anyone of the grains lock down on the opening, look for volatility and activity in the others.

Like the corn. Trading the beans and wheat should give you all the juice you need to make a profitable trade - in any direction except sideways.

The knee jerk reaction in the beans was as expected - followed the corn to the downside, then whipsawed back up, once the sucker shorts were out.

Again, for me, as long as it's not sideways, the action will give enough clues as to which direction to take (and when to jump in - and more importantly - out).

May your profits be with you!

[torero]

So you watch these 3 to find who's leading and who locks down first? Interesting approach.

[keymoo]

Torero,

A good trade that was done in the TTM room on soybeans was when corn went limit down, look to soybeans or wheat and sell a breakdown of the first 1 min bar. Very simple and worked beautifully.

[torero]

Any recommendation on trading on the electronic hours before the pit hours open? Trying to get in early on the swing. Good or bad thing?

[cooter]

	Quote:	torero
	Any recommendation on trading on the electronic hours before the pit hours open? Trying to get in early on the swing. Good or bad thing?

Thin volume is the issue. But don't discount the moves, they are useful in your analysis. Gap charts in the grains can kill your P/L, especially if you don't take into account the activity overnight.

[torero]

One problem I noticed as well, is the BIG difference in charts between PIT wheat and continuous wheat charts. MrPaul noticed this last Friday when we couldn't agree on the support/resistance area (I thought resistance was at 32 when he thought it higher). I used @W.P (Pit) and @W (regular) in Tradestation. Any comments on this?