Market Tops Series (Part 1): 8 Dollar Corn

July Corn 30-Day (30-min) Chart

While no two moments are exactly the same here are highlights of general market tops characteristics specifically for corn:

1) Later stage bases are more likely to fail and corn failed to form a 3rd base.

2) Fear is stronger than greed, thereby,  panic selling typically last 1-3 days longer after the initial stampede.

2) The attempted breakout on failed third base was not confirmed by volume, indicating that the buyers are exhausted.

2) There was a sharp break in corn on no news, fundamentals may be good but there was a stampede of money, DO NOT WAIT UNTIL EVERYONE ELSE IS SELLING; GET OUT ON THE FIRST DANGER SIGNAL

3) Wild fluctuations, high volume, and great activity. This was seen in the funds buying power on the way up and on the way down. In this case, on the second upleg, the 2nd volume spike works with a general rule of thumb (get out on the 2nd or  3rd spikes in volume and signs of fluctuation).

4) The gap (highlighted circle) was quickly filled

5) price is the ultimate fundamental and many speculators believe that 8 dollar corn is expensive

6) the bollinger expanded drastically

7) RSI indicator reached over 90

8) diverging moving averages

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