In the first part of this series we discovered the $CORN Market maker and the massive position he built down at multi-year lows. Now we are taking a look at $WHEAT, and as you can see there are some strikingly similar features.
Part one ($CORN) link:
1. Wheat has been on the decline since July 2012, with a small test pump taking place at the beginning of this year. Volume in the time previous to the test pump (09/2011 - 02/2014) was almost non-existent. In comparison to $CORN, $WHEAT has even less volume trading which we can conclude means that there was almost nobody watching it.
2. Over the past 25 weeks there has been extremely heavy buying while the market maker has built his position. Considering we are at all time lows for wheat and the size of the position built, we may see this run last for quite a while.
3. Watch the CORN/WHEAT pairing closely. They've been taking turns leading each other to breakout. Currently Wheat is up 8%+ this week, with $CORN up only about 2%, meaning that I believe $CORN will follow up shortly.
Key Range Levels
#1 : $10.60 - $13.50
#2 : $13.50 - $15.70
#3: $15.70 - $17.70
Part one ($CORN) link:
1. Wheat has been on the decline since July 2012, with a small test pump taking place at the beginning of this year. Volume in the time previous to the test pump (09/2011 - 02/2014) was almost non-existent. In comparison to $CORN, $WHEAT has even less volume trading which we can conclude means that there was almost nobody watching it.
2. Over the past 25 weeks there has been extremely heavy buying while the market maker has built his position. Considering we are at all time lows for wheat and the size of the position built, we may see this run last for quite a while.
3. Watch the CORN/WHEAT pairing closely. They've been taking turns leading each other to breakout. Currently Wheat is up 8%+ this week, with $CORN up only about 2%, meaning that I believe $CORN will follow up shortly.
Key Range Levels
#1 : $10.60 - $13.50
#2 : $13.50 - $15.70
#3: $15.70 - $17.70
