Soybeans

[The Bear 10]

What are your thoughts on soybeans anyone?

 

I was long months ago on a swing trade at the beginning of the bull run...but got out early for a small profit.

 

At this point i'm reluctant to get in...I feel the move might have happened already.

[wsam29 10]

 

At this point i'm reluctant to get in...I feel the move might have happened already.

 

I did the same thing, went long July Beans on 30 Jan 07 around 748, exit my trade +8, went as high as 816, that's alot to leave on the table so to speak, but there are many psychological reasons for us leaving early in a trade.

 

If you keep thinking like that, you will miss the next move.

 

Forget about your last bean trade and just watch what is going on now.

[The Bear 10]

No it's true. Your right I keep looking at the bean trade. I need to stop looking. It was a daily swing trade but the thing that gets me the most is I was following it all summer, everyday, and I felt the turn...and I got in at a great spot.

 

Check it out:

 

OCT 4 2006

 

ENTRY: 555

[The Bear 10]

WSAM, it's funny I notice you live in T.dot. I live near YONGE + YORK MILLS

[wsam29 10]

birchmount & eglinton

[The Bear 10]

Oh no - your near that monster walmart. I went there the other day and spent all my time trying to find stuff. Then you have to wait in line for an hr. It is literally bigger than the Anchorage, AK airport.

[torero 10]

I'm just getting into agriculture futures. Anyone know the difference between soybean and soybean meals? Differences in trading characteristics? From seeing the chart, I see these trend very well. I'm still researching but interested into learning more. I hope this section will be more informative over time.

[Guest cooter]

I'm just getting into agriculture futures. Anyone know the difference between soybean and soybean meals? Differences in trading characteristics? From seeing the chart, I see these trend very well. I'm still researching but interested into learning more. I hope this section will be more informative over time.

 

I stick with the big three: Corn, Wheat and Soybeans. On lock limit days, it's pretty volatile in the other grains, so it's worth my while.

 

I'm just curious what others are paying to trade these myself, seeing as I currently have a pretty sweet deal...

[Guest cooter]

birchmount & eglinton

 

I must have spent a good 10 years of my life in and around the GTA myself, before moving stateside.

[notouch 10]

Corn hit it's 5% limit on Friday and gapped down again Monday. I believe it hit its limit again and is currently locked limit down so you can't sell. That's a bad situation for those locked in long positions.

[torero 10]

Corn hit it's 5% limit on Friday and gapped down again Monday. I believe it hit its limit again and is currently locked limit down so you can't sell. That's a bad situation for those locked in long positions.

 

Did anyone follow Wheat yesterday? Same thing, gapped down, then stopped and reversed. It hit a major support level and moved back up the rest of the day. I wanted to go long but wasn't sure of the lock limit concepts. Maybe you can shed some light. What's the max. percentage move up or down before the lockup takes place? Any examples we've seen lately?

[notouch 10]

The corn limit is 5% so if it goes down 5% in a day then it's limit-down and can't be sold. This happened on Friday and Monday but there was buying towards the end of Monday so probably that's the end of the limit down moves. Wheat wasn't limit-down but was pressured to the down side by the weakness of corn. They are of course highly correlated markets.

[Guest cooter]

Actually the limits are 20 c for Corn, 30 c for Wheat and 50 c for Soybeans.

 

All traders should go straight to source itself....at the CBOT... to verify, and not rely upon anecotal reports or secondhand news.

 

Corn: 20/c CBOT - Corn Quotes Open Auction

 

Wheat: 30/c CBOT - Wheat Quotes Open Auction

 

Soybeans: 50/c CBOT - Soybeans Quotes Open Auction

 

Look for the section that says "Daily Price Limit".

 

Good trading, folks!

[torero 10]

So what's your opinion if for example wheat closes locked in limit down, what happens the next day? Gap down until it hits another limit down?

 

I've been watching the electronic session from 6pm-6am with pit time 9:30am to 1:15pm, very interesting time they set, they close 3 hrs before pit opens.

[Guest cooter]

Pretty simple, really. Let's assume that you are daytrading, and not taking swing positions overnight.

 

If anyone of the grains lock down on the opening, look for volatility and activity in the others.

 

Like the corn. Trading the beans and wheat should give you all the juice you need to make a profitable trade - in any direction except sideways.

 

The knee jerk reaction in the beans was as expected - followed the corn to the downside, then whipsawed back up, once the sucker shorts were out.

 

Again, for me, as long as it's not sideways, the action will give enough clues as to which direction to take (and when to jump in - and more importantly - out).

 

May your profits be with you!

[torero 10]

So you watch these 3 to find who's leading and who locks down first? Interesting approach.

[keymoo 10]

Torero,

 

A good trade that was done in the TTM room on soybeans was when corn went limit down, look to soybeans or wheat and sell a breakdown of the first 1 min bar. Very simple and worked beautifully.

[torero 10]

Any recommendation on trading on the electronic hours before the pit hours open? Trying to get in early on the swing. Good or bad thing?

[Guest cooter]

Any recommendation on trading on the electronic hours before the pit hours open? Trying to get in early on the swing. Good or bad thing?

 

Thin volume is the issue. But don't discount the moves, they are useful in your analysis. Gap charts in the grains can kill your P/L, especially if you don't take into account the activity overnight.

[torero 10]

One problem I noticed as well, is the BIG difference in charts between PIT wheat and continuous wheat charts. MrPaul noticed this last Friday when we couldn't agree on the support/resistance area (I thought resistance was at 32 when he thought it higher). I used @W.P (Pit) and @W (regular) in Tradestation. Any comments on this?

[keymoo 10]

torero, have you tried the composite of pit and electonic? @W.C. This is what I use.

[torero 10]

No, but I'll take a look at it. The problem which one is more reliable: composite, pit only, or electronic only? In ER2, the support/resistance are not so different between the 2, but in wheat, wow! It's like night and day. That't my concern.

 

The two charts, below shows the Friday's close, with one chart above the support and the below resistance. This is what is driving bananas.

 

 

[keymoo 10]

Composite for sure.

[Guest cooter]

Composite is the most reliable, as the volume and activity is moving to the electronic now.

 

Plus, I believe Tradestation only gives you a choice of pit versus composite only.

[kerry123 10]

in the soy bean trades, if you have a good spot you have to let them ride,

I had 541.25 last summer with 10 contracts, placed paper break even and didnt look at market for 6 weeks.