Corn Trying to Regain Street Cred

Along the lines of my recent inflation trade-themed blog posts, the corn fund is breaking a steep downtrend today, highlighted on the daily chart, below.

I am long a starter position here, looking for the soft commodities to attempt to resume their exhilarating first quarter rally.

The softs have been quiet of late, likely keeping retail speculators honest, what with all of the headlines about the coffee draught, etc..

However, the action in sugar, especially, has been inspiring of late.

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Treasuries saw a sharp sell-off just now, as I am still of the belief that patient bond bears will be rewarded into the end of this year.

I have taken a few shots on the short side but have been quickly stopped out this year, instead opting to wait for actual signs of a breakdown before hitting the short with size and conviction.

Still, the TLT daily chart shows the fierce 2014 rally is looking heavy, leaning against the 50-day m.a..

A close below $111 today would be a good start.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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At this stage in the precious metals miners rally, I am still holding a piece of my JNUG long.

However, I am looking for miners to play “catch-up” to the ones leading us higher, which brings up some little nuggets I might otherwise not touch,

AAU is one such name, not nearly as extended, short-term as names like ABX SLW, etc..

True, we are talking about a penny stock, so use caution with size and market orders,

But the daily and weekly timeframes, below, are promising with a move over $1.50.

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To update previous analysis, note premier silver miner Silver Wheaton as well as the crude oil ETF continue to frustrate range-traders and faders who have enjoyed great success shorting rallies in these names for years now.

This is typically a very bullish sign, to see signs of an emerging rally which becomes and stays overbought for quite some time.

We have certainly seen signs of rotation into “inflation trade” types of stocks and sectors, which I have highlighted. Let’s see if the rotation has legs, into steels, ags, even coals, etc…

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SQM is a name I have referenced before as a potential major bottoming play.

Note the inverse head and shoulders with a $33 neckline upside trigger.

You are talking about a materials play, in the age, with lithium exposure to boot, in South America (Chile). All three of these factors point to sectors and industries which have seen inflows of late.

The stock had a strong afternoon yesterday, which is spilling over into this morning’s session.

Keep this one on your radar long.

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