Soymeal bull spread (Jul04-Jan05)
Buy SM Q4 & sell SM F5, another MRCI inspired idea:
Buy on 22 April and sell the spread mid July is supposed to have worked 15 out of 15 years making about 5pts.
This year is clearly exceptional as the spread widened yesterday by almost 4pts.
Looking at chart, one can identify various TA patterns:
1. Elliott wave pattern seems not complete. After ABC zigzag, it may now be in wave 5 targetting 764 for truncated up to 905 where 5= 1.618 x wave1 (considering this recent rally has gone beyond bottom of a, I do not think that recent decline is part of an impulse wave down.
2. look at those indicators on 60minn chart. MACD cross-over near bottom, and strong RSI (albeit reaching overbot levels).
3. On the daily chart, the price is back to rising 30SMA, and indicators are switching to green. RSI is still only at 54.
Looks good.
Buy SM Q4 & sell SM F5, another MRCI inspired idea:
Buy on 22 April and sell the spread mid July is supposed to have worked 15 out of 15 years making about 5pts.
This year is clearly exceptional as the spread widened yesterday by almost 4pts.
Looking at chart, one can identify various TA patterns:
1. Elliott wave pattern seems not complete. After ABC zigzag, it may now be in wave 5 targetting 764 for truncated up to 905 where 5= 1.618 x wave1 (considering this recent rally has gone beyond bottom of a, I do not think that recent decline is part of an impulse wave down.
2. look at those indicators on 60minn chart. MACD cross-over near bottom, and strong RSI (albeit reaching overbot levels).
3. On the daily chart, the price is back to rising 30SMA, and indicators are switching to green. RSI is still only at 54.
Looks good.
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