Tech Guy Soybean Comments 2/8/26

Soybeans had a rare, non-report day breakout to the upside last week. Keep your downside protection on above 1100 basis the May contract. If the buyers defend 1100 or above, leave 1150 to 1180 open to the upside.

Report day is Tuesday, therefore trading conditions should remain lively. Be prepared to pull the trigger on a moment's notice.

To recap Elliot wave theory, 5 waves is a complete impulse higher. There are 5 smaller waves that comprise the larger count. Therefore, 1 more count (5) higher in the May contract is where the odds lie. Please see the May bean chart below, and note the smaller wave count within big # 3 up leg. Also note the extreme volume on the breakout day - it is more than double the last report day on January 12th.

In terms of gallons of fuel consumed per hour on full horsepower load, the John Deere 720 diesel (built in the 1950’s) holds the record for fewest gallons per hour under full load. Yes, that is a two-cylinder tractor still used on some farms today.

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