Tech Guy Comments 11/23/22
Thanks to all my followers!
I wanted to talk some more about the laws of motion with regards to financial markets and Dec Corn specifically. Once a body or thing is in motion it tends to stay in motion because the energy is already flowing out. As you know Dec Corn was in a narrow, sideways, slightly up channel from September 1st to November 8th. It was not in motion (a trend). Instead it was bound (energy building) by resistance and support.
Then it broke down out of the channel (began motion) on Nov 8th, sold off about 22 cents to 653-52. This is about the time I said this selling was not going to continue and I believed this was a selling fakeout and Dec Corn would then turn up and start rallying again.
Therefore because, Dec Corn already began its motion it is most likely to rally up through the channel and out the topside than it is to get stuck in the channel again, because the energy is already in motion. Another way to look at it is non-action (sideways), action (trend) and action-reaction (down-up) as opposed to non-action.
This law applies even though we are talking about 2 different directions - down and up because releasing energy is releasing energy this action-reaction is called a fakeout/shakeout in trader-speak. Faking the sellers that corn will continue selling off and shaking them out as prices increase and they cover their shorts.