SJM Trade Idea

This is a "show me trade" and to get best positioning, I highly recommend using alerts as things can happen and have been happening very quick today (take the GLD move for instance).

Here's the original SJM Trade concept from yesterday

Here's the update yesterday identifying the probable support/bounce area

Here's today's first update as SJM hit that support area and bounced

This is an update as you "may" want to consider a phased in entry, otherwise it should be useful for the "show me" trade as well.

Very simply, this is the Tweezer support mentioned as likely short term support yesterday, it was hit today and did as expected. Volume on today's bounce is not impressive.

For the "show me " trade, we want to see a move below the red trendline at $74.09 (If you are using price or trendline alerts, I would prefer to see that area broken on a close).

The two moving averages where I expected resistance are the 10 day in yellow and the 200 day in blue, I DO NOT think SJM will be able to fill the gap, that would leave a VERY bearish and somewhat rare, breakaway gap.  If you are considering a phased in approach, then I would look for a move to the 200-day and then some signs of a loss of momentum or a reversal. However the original idea was "show me" with a break below the red trendline, say below $74 on a closing basis.