Back In the Saddle
Yesterday the blog bought the May 2016 soybean/wheat spread at $3.62 1/2. This re-positioned us back on the long side after last week’s attempt was stopped out right away. We are initially going to use a two-day close below $3.40 1/2 as our exit signal.
Last week the spread cracked important price support at the September low of $3.56. The immediate reversal higher triggered a Wash & Rinse buy signal, which is a failed bearish breakdown attempt. Hopefully, this will reinforce the seasonal pattern that points higher from now thru early January.