V. 8:14 (574-574): A professional solves our monthly mystery

V. 8:14 (574-574): A professional solves our monthly mystery
Item# \V08\C14\M7.PDF
Availability: In Stock

Product Description

A professional solves our monthly mystery

It appears that a professional topped the submissions for the March mystery chart (Figure 1). James S. Vick of Kent, Connecticut, correctly identified the chart as that of 1980 soybeans, just before liftoff (Figure 2). Mr. Vick's analysis follows:

James S. Vick

JV Trading

Kent, Connecticut

The Mystery Chart in your March issue is a daily soybean chart from about May 15, 1979, to June 23, 1980. The chart depicts a low in April 1980, which preceded a seven-month rise of more than $2.00 a bushel. However, the moves in 1979 and 1980 were dwarfed by a 13-month decline (from November 1980 to December 1981), which carried beans down about $6.00 a bushel.

The chart, as printed in your March issue, appears to have contract rollovers embedded in at least five places (every two months from mid-October 1979 to mid-June 1980). The rollovers show on the chart as upward gaps of about 2 cents each. This distorts levels of support/resistance and skews the trendlines, compared with what they would have been on a specific or continuous contract. The rollovers make the decline appear more gradual than it actually was and would likewise make the ensuing advance appear steeper.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order