Thursday, January 19, 2017

01/13/17 #Sugar Chart $CANE #Free

Sugar Chart
Those that view the message of the market on 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.

Sugar's overall trend, revealed by trends of price, leverage, and time, defined and are discussed in the COT Matrix for subscribers.

Subscriber Comments


Sugar's focused bull opportunity has generated an impressive 22% annualized return for the bulls from the third week of March to first week of December (see CANE Matrix). This opp recorded a 94% annualized return after the first week of June. Disciplined bulls that withdrew their initial investments when BuS >0 let their profits run while keeping an eye on TIME and trend energy.

Smart money, a small minority listening to the message of the market, recognize the decay of TIME as BuST rises above 0 and approaches 2. BuST = 1.3 had disciplined bulls prepared for a reversal while the majority remained blindly bullish.

Sugar has been in consolidation (C/P) since the first week of December. Traders are watching from the safety of the sidelines until the trend refocus (see Matrix).

CANE Matrix

A weekly close above the September 2016 gap from 14.25 to 14.35 supports the up impulse, while a close below the January gap from 13.00 to 13.25 could reverse it. A reversal supports the testing of lower support.

On Balance Volume (OBV), a crude measure of trend energy, has been lagging price since late 2015. OBV's lower highs relative to price, a negative divergence, suggests distribution that supports the bears.


Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.