Short-term Moves in Crude, Beans and the Dow

The QuantCycle Indicator reveals opportunities in , soybeans and the according to John Rawlins.

This week we present three short-term opportunities from the QuantCycle Indicator.

Dow Jones Index

The QuantCycle indicator presents an interesting scenario this week for the Dow Jones Index. On the 240-minite chart (see chart below), the Dow appears to have some strength left before it makes a significant short-term top. On the daily chart (second chart) that top may not hit for another weak. All things being equal, traders should look at any strong rally as a potential selling opportunity.

Crude Oil

Looking at the QuantCycle indicator for crude oil on a 240-minute chart (top chart) and daily (bottom chart) timeframe reveals a lot of about the recent volatility in the market. The shorter-term chart indicates extreme short-term volatility, while the daily chart shows a steadier, continued rise in crude. In this case, the best play is to view any short-term weakness as an opportunity to get long.

Soybeans

The QuantCycle expects last week’s weakness in soybeans to continue (see top chart). However, both the 240-minute chart and the daily chart (bottom chart) indicate that beans will make an interim low late in the week followed by a rebound. Traders should take profits on any short positions by the end of the week and not carry them into next weekend. While the QuantCycle shows a rebound beginning next week, it is not expected to take out the December high and it will be followed by a significant downturn, so any strength later in the month should be seen as a selling opportunity.

The QuantCycle indicator is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then

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