Japanese Candlesticks predicted the Rally in Wheat
Together with all of the grains, the price of wheat has been in a major decline for many days, following along with the tremendous upsurge in the price of corn which was caused, at least in part, by the demand for corn as the base for ethanol production. This entire ethanol craze has been a gigantic boondoggle, foisted upon the public by an inept Congress and by a badly-advised President. The balloon inevitably popped, and prices of all of the grains came crashing down. This movement, too, was bound to come to end. We have been watching to find any evidence of a bottoming-out which might, in turn, lead to another upswing in prices in wheat; and we think we found it this week. The patterns which were formed by prices in Japanese Candlestick format tell us that prices have quite probably stopped falling. Indeed, action in the wheat pit during this weeks produced a significant rise, which the odds say ought to continue on for a while longer. In any event, the volatility in all of the grains will probably continue for quite some time, at least through harvest time in the United States.