Trade Idea- SJM (Short)

I like the looks of this chart and I like the potential trade set up, it's lower risk and higher probability.

 Here's the weekly chart and long term trend line.

 The daily chart shows the real trouble, a massive break away gap on huge volume.

 I highly doubt this gap gets filled, but even if it did, you wouldn't be in the trade. There's resistance coming up around the blue 200 day moving average which is also starting to roll over and resistance at the yellow 10-day m.a. which has tracked SJM fairly well, still, this is a "show me" trade as far as the entry goes.


 Money Stream has plunged after going negative before the breakaway gap down.

 Here we see the bounce off of the long term trend line on declining volume and smaller candles, the idea would be to wait for a reversal confirmation before entering, that could come any day, but one scenario would be a bearish engulfing candle which I drew in red as today's candle thus far shows a loss of all momentum as it nears potential resistance areas. This reversal candle is the "Show me" aspect of the trade and increases your probabilities as well as putting you close to a natural stop which would be just above the recent highs.

 Here's the longer term intraday (30 min) 3C chart which went leading negative before SJM gapped down.

 The 15 min chart is already going negative as resistance areas are approached.

 Clearly the 1 min below and 5 min above are quite a bit weaker and that is what is bleeding in to the 15 min chart.

So it looks like we are very close to a reversal day as momentum runs out and negative divergences get more serious. All that is left is to see a reversal start in the trend and place a stop nearby at the recent bounce highs. I would set some price alerts just to remind you as will I.