Tech Talk – Beam Me Up, Class III – July 27, 2023

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VOICEOVER
Future trading involves risk and it’s not suitable for all. Investor contact provided in the statement is meant for educational purposes and is not a solicitation to buy or sell commodities.

00;00;08;24 – 00;00;21;13
CODY
Hello everybody. Welcome back to another episode of Tech Talk. I am Cody. This is Andy, Per usual. We are the tech talk crew coming atcha 27th of July 2023, just about 4:00 Central Time.

00;00;21;15 – 00;00;28;14
ANDY
In China, 4:00 Central time. And like 110 feels like what? It feels like 105 or whatever it is. We all.

00;00;28;15 – 00;00;33;12
CODY
Know five. Would you guys say you’re in a heat advisory warning? Don’t go outside, Don’t like.

00;00;33;14 – 00;00;35;15
ANDY
Don’t don’t go outside. You’ll melt.

00;00;35;18 – 00;00;38;12
CODY
Don’t get ice inside. Just like don’t do anything.

00;00;38;14 – 00;00;44;07
ANDY
All the hang out saying, go get the ice cream. That’s fine. Go get the ice cream. Just don’t figure out a way to get it inside.

00;00;44;09 – 00;00;46;00
CODY
Just bring it back as soon as you can.

00;00;46;02 – 00;00;50;24
ANDY
Correct, Bruno. Just like you go out. That’s right. Yes. That’s great.

00;00;50;26 – 00;00;52;20
CODY
I’m going to have to get it tonight. If it’s going to be one.

00;00;52;22 – 00;00;53;24
ANDY
I don’t.

00;00;53;26 – 00;00;54;22
CODY
Want to burn.

00;00;54;25 – 00;00;57;07
ANDY
See, aliens landed. By the way.

00;00;57;09 – 00;01;01;26
CODY
We do a whole episode on that whole episode.

00;01;01;28 – 00;01;08;14
ANDY
Beers and in cubes and spheres and stuff like that. Wild look out.

00;01;08;16 – 00;01;08;29
CODY
Look at you.

00;01;08;29 – 00;01;13;19
ANDY
Think what it’s aliens landing that they needed cheese Maybe that’s why blocks were ripped.

00;01;13;21 – 00;01;18;27
CODY
I think these I buy a lot of cheese and take it back to planet Titan or wherever they’re from.

00;01;19;01 – 00;01;20;15
ANDY
The coal planet to be.

00;01;20;18 – 00;01;21;06
CODY
A sweet planet.

00;01;21;06 – 00;01;25;16
ANDY
To be some planet Titan.

00;01;25;18 – 00;01;28;28
CODY
You obviously So you guys, it’s a different glass three pulled up You think the aliens are.

00;01;28;28 – 00;01;37;13
ANDY
This and you say good luck right down to aliens landed this first order of business they got a they’re going to buy some cheese they sent by us three.

00;01;37;15 – 00;01;40;17
CODY
You think they’re buying cheese lately to help us out here? I don’t know.

00;01;40;22 – 00;01;50;27
ANDY
Maybe that’s why we went from a dollar 35 to dollar 85. It could be that it is aliens are ripping the saying higher. I don’t know. I would look at loggerheads. Look what we got here. Look we are here. What do you call this thing?

00;01;50;29 – 00;01;52;00
CODY
I would gap.

00;01;52;02 – 00;01;58;06
ANDY
Your favorite right there small but it’s their.

00;01;58;12 – 00;02;02;07
CODY
Gap at about $17.16.

00;02;02;09 – 00;02;08;18
ANDY
And it’s 17 bucks and some change. Interesting. Or a little gap and go what do you think?

00;02;08;21 – 00;02;34;02
CODY
I honestly think so with somebody in the office asked the opinion and that was kind of my general consensus. I drew a Fibonacci retracement from 1559 up to 1855 and getting down to 1705 would be 50% retracement. I’m not saying that we necessarily go back there, but if we did, it’d be a gap filler for sure.

00;02;34;04 – 00;02;52;10
ANDY
Oh man, look at that. Look at that, That 50% basically fills that gap. Yep it feels like we’re going to go do that right. I mean they they started saw a couple sellers in the barrel here after we retire like this have been walking down. Interestingly enough, the block had two bids today and what caught my eye or something like that.

00;02;52;14 – 00;02;53;13
CODY
Correct. So if the.

00;02;53;13 – 00;02;58;29
ANDY
Trade that was that was interesting that was that was something I don’t know who knows what’s going to happen there.

00;02;59;01 – 00;03;02;27
CODY
But the volume is going to slow down a little bit. Basketball trading sentiment.

00;03;02;29 – 00;03;21;13
ANDY
Slowed down a little bit, too. That’s a good point. I think you’re right. I think you got to fill this gap and see where we go. But, you know, you could be a little bit of a gap and go here. I mean, this is price. Definitely. If I can just remove the retracement for just a hot second here, look where this gap coincides with quite a bit.

00;03;21;16 – 00;03;39;27
ANDY
It really fell apart, right, The 17 and 1715 area. So it’s interesting. I mean, if you break through it, the market certainly didn’t like being there for very long and it didn’t like being here on the way up. It didn’t like it moved away from a really quickly on the way down. That said, current cash worth current now 1716.

00;03;39;27 – 00;04;06;22
ANDY
What’s up premiums is in August way 2020 or excuse me yeah honest way so I mean this could be you could see a nice little rounding here and if it’s if it’s supportive here, you would I would imagine you’re at least going to attempt to get back into kind of like this area. Right. Right. So you think we’re gap and going, right, Just bounce off scapula and rib eye.

00;04;06;24 – 00;04;19;10
CODY
I believe that we’re going to gap and go that is and I think when somebody asked internally I had said by Friday today Thursday we’re one more day could be completely wrong but that’s sure is what it looks like it feels like to me. Yeah.

00;04;19;14 – 00;04;25;22
ANDY
I mean, I think you get to go fill this gap first, correct? You’re right. So to your point, Gavin going, I mean.

00;04;25;29 – 00;04;29;00
CODY
We’re not too far away from there right now, right? We probably.

00;04;29;02 – 00;04;54;25
ANDY
Aren’t. So shoot priced 1742 So filling this gap that high or if you want to use a close, that would be 1713, right. So call it another $0.30. It’s $0.30, right. That’s not a lot now but yeah, no, I mean it’s really interesting. Like we had what the block rallied nearly $0.50 in a week and it’s kind of showed you to that the market how just wicked this this got all of a sudden.

00;04;55;02 – 00;05;12;00
ANDY
I agree I think you got to go still is gap and then you know the potential exists for us going to have a quick run here I think especially to if we start to see let’s say the block hold steady, we start to trade some barrels and maybe the barrel just stops going down separately. Isn’t that big of a premium to cash?

00;05;12;06 – 00;05;38;06
ANDY
You could argue it’s not premium really at all, and I think it would be amongst that heading into its pricing period, which I think is another two weeks check out bases loaded with Joe, by the way, to learn more about that build and more premium heading into this pricing period that we’ll see. So you think aliens are either among us or have landed earlier congressional hearing and then they they’re buying cheese we’re going to gap and you mean so the gap go higher.

00;05;38;09 – 00;05;46;09
ANDY
Correct. Got it. All right. Are you buying? Are you buying like let’s say we go trade 1710. You going to have a hammer out and just like.

00;05;46;11 – 00;05;50;20
CODY
Yeah, I mean, I think for looking at this chart and everything that we just brought up plus the aliens, I think you kind of have.

00;05;50;20 – 00;05;55;06
ANDY
To listen it. Okay cool. Right. I think you’d be, I think, make friends with aliens.

00;05;55;10 – 00;05;58;08
CODY
I think so too. I’d like to think that I’d be a friendly individual.

00;05;58;13 – 00;06;05;29
ANDY
Like a good like Earth ambassador, right? Yeah. Practice, practice. This one. You can do this. They go.

00;06;06;06 – 00;06;07;18
CODY
Yeah, got it.

00;06;07;20 – 00;06;16;13
ANDY
Do like, you know, like. Hey, I have a question. And then like, do watch this and you do this like, bam, bam, like, I work on this one.

00;06;16;13 – 00;06;17;28
CODY
We’re going to work on that.

00;06;17;28 – 00;06;34;28
ANDY
What’s the next chart here we go. So, oh, maybe aliens got to buy some pawn where you think who they may get a chance to buy a little cheaper? I don’t know. In the end is what we talked about last time making it potentially. You know, here it is.

00;06;34;28 – 00;06;40;21
CODY
And I what I don’t know. I don’t consider that a full information at this point. You mean? I don’t.

00;06;40;21 – 00;07;08;05
ANDY
Think so. Not yet. I think you got to get below like this stuff right here. So what is this, 536 What I think is interesting is if you look at this, this guy right here versus here and I’m down here at the momentum area, this momentum here and then. Right. I mean, really it’s it’s like what’s interesting about these secondary indicators is that they can trade, they can have like their own formations, right.

00;07;08;07 – 00;07;13;19
CODY
Right. The momentum is actually shaping up to be quite an information in itself.

00;07;13;21 – 00;07;33;13
ANDY
Yes, exactly right. So when it crossed when it crossed zero and it started to rally. Right. And then it didn’t it wasn’t able to break through its previous high, or at least it appears to be failing up against that high. Should this start to roll over and cross back into negative territory. That would be a bearish indicator because you have a bearish confirmation here, right?

00;07;33;13 – 00;07;51;11
ANDY
You have a failure to put in a new high in the secondary indicator and you also have a failure to put in anything. I mean, we’re not even really getting close to this for high, so it’s a sign of weakness. Where does it go? I mean, there certainly was a lot of choppy trade around for 95 bucks. I think that’s the next stop.

00;07;51;14 – 00;08;05;01
ANDY
So that we might I think it feels like, you know, I know we talked about there being a potential for an m I think starting to act that way both in the chart itself, but also to some of the secondary indicators as well. And now I think we get it.

00;08;05;03 – 00;08;16;02
CODY
And I’m looking on yours so I might I have the 100 day simple moving average which I don’t think you have yours on there. But what’s what’s interesting about today is we settled right on that line.

00;08;16;05 – 00;08;20;10
ANDY
All right, hang on. Let me change let me change the 200 day to 100 day.

00;08;20;13 – 00;08;28;16
CODY
Although I think the 200 is interesting also, because we went and touched the 200 and then came screaming right back down within for 3 to 4 trading sessions to the other day.

00;08;28;18 – 00;08;38;24
ANDY
Look at that on the second day, Richard. So I just changed the green one to the 200 day or 100, excuse me. And if I’m looking at that correctly, it closed below.

00;08;38;24 – 00;08;40;05
CODY
It is below.

00;08;40;08 – 00;08;40;28
ANDY
Yeah.

00;08;41;00 – 00;08;45;07
CODY
Okay. So the zoom in the into the Yeah.

00;08;45;07 – 00;08;53;03
ANDY
So the 100 day close 546 and a half. Today’s close is from.

00;08;53;08 – 00;08;53;21
CODY
540.

00;08;53;21 – 00;08;56;09
ANDY
542 and a quarter.

00;08;56;11 – 00;08;57;29
CODY
Now you’re correct.

00;08;58;02 – 00;09;14;12
ANDY
Yikes. So you did close below 100 day moving average. So the question is do we get a lower open tonight. Right. You get a lower open. You’d confirm that you’d have not only some longer term moving averages. Great spot, by the way, as work also to some of the secondary indicators point bearish.

00;09;14;15 – 00;09;18;04
CODY
Let’s say. Would you open it a little bit lower tonight testing $5.

00;09;18;04 – 00;09;33;00
ANDY
Again that’s I think you got to get back in those nice hands right there. Next stop, that stuff, which is for 90 to 5 bucks. So, you know what? This is a very positive tech talk to the day producer.

00;09;33;02 – 00;09;33;22
CODY
It is not.

00;09;33;22 – 00;09;38;15
ANDY
That. Let’s talk more about the jelly beans.

00;09;38;18 – 00;09;40;00
CODY
Soybeans.

00;09;40;03 – 00;09;55;13
ANDY
And this has been a rip roaring trade here. Yeah, I was talking to Jimbo about this Giamatti’s. And to me, I think I don’t know, man. This this feels like.

00;09;55;16 – 00;09;57;15
CODY
Let’s say, just let’s kind of roll over.

00;09;57;18 – 00;10;19;14
ANDY
I was thinking the same thing in, you know, like, the issue is, is that it continues like, this trend has not been broken, even though it’s kind of gone the sideways here. It sailed. It is failing to put in to get rid of this one real fast. It’s it’s failing to put in the new contract high on this new high close, I should say.

00;10;19;17 – 00;10;34;10
ANDY
Or is it now. Excuse me. Not until I close. I’m sorry. Get over this high from the previous one. Is this beginning of the year? So you just kind of seen this consolidate? Yeah. I mean, you’re seeing this consolidation right up against the same area and last time did it just steadily move, grind itself down? Took a while.

00;10;34;13 – 00;10;55;11
ANDY
So it’s going to do two times this uptrend, right? Yep. So it feels like it’s just going to be really volatile and you’re seen. So here’s one that’s really interesting. If you look at the secondary down here, this RSI, it got into overbought territory, came back down, try it again. If it can’t get through it, that’s a failure.

00;10;55;14 – 00;11;15;27
ANDY
And you’re also seeing we just looked at it, corn momentum is doing the same thing that Corn’s doing, right where you had a higher you had this high try to come down and retraced that and are now putting in a lower high. This one’s just a lot more pronounced. But the momentum in this market is clearly moving towards the Bear camp.

00;11;15;29 – 00;11;16;21
CODY
Correct.

00;11;16;23 – 00;11;39;09
ANDY
So I think you could, I think, take a shot to be short this. I think you got to have a tight stop on it, though, because the flipside is I think if you get a close over, like what is this for 29, 14, 29 change they 40, 30, close, really more like a 36. Basically, if you can close over this all this noise right here and then open higher I mean it could turn into a bit of a face over.

00;11;39;15 – 00;11;45;15
CODY
Really confirm the being in the bear camp. You need to close along that long term trendline for sure.

00;11;45;17 – 00;11;53;07
ANDY
I think if you broke that, you you’re right into the jeopardy of retracing a significant portion of this rally.

00;11;53;09 – 00;11;53;14
CODY
For.

00;11;53;14 – 00;11;57;06
ANDY
Sure. And then let’s talk about like let’s say that happens.

00;11;57;09 – 00;11;59;19
CODY
That was 50% retracement then.

00;11;59;22 – 00;12;17;12
ANDY
Let’s use that. I mean, you’re talking about 1280, which kind of converges with what is at the 50 day, the 100 day. So yeah, I mean, it exists the potential exists for it. If it starts to roll over and break this trend, it’s going to it would probably do it quickly, right? You’d have like a 45 cent lower day kind of thing, followed up with like a 35 cent lower day.

00;12;17;18 – 00;12;33;11
ANDY
All of a sudden we’re 12 1280. Right. So I think you can be a little bit short here, especially given today’s price action thing you could add if you break through this, you want to be careful of it getting it like you know where you’re right, it’s kind of giving you those odds, right?

00;12;33;13 – 00;12;34;04
CODY
Correct.

00;12;34;07 – 00;12;37;13
ANDY
Closes over this high from this day if you definitely want to be out of that.

00;12;37;20 – 00;12;41;12
CODY
What is it about 14? Is it 1436? 1437? Yeah.

00;12;41;14 – 00;12;59;14
ANDY
Or in that area, Right. Yeah. So I think tonight’s open and, you know, tomorrow’s session is going to be key because now you’re like another day like today and you’ll break through this. Right. Right. So now it’s kind of the onus is turning on the bears. But like I said, they’ve got the momentum. And like these indicators, the secondary indicators on their side.

00;12;59;16 – 00;13;07;13
ANDY
So you’re not you’re getting like the bearish conformation rather than bearish divergence. So that’s all I know.

00;13;07;16 – 00;13;09;22
CODY
We appreciate the insight as always.

00;13;09;24 – 00;13;17;07
ANDY
I don’t know anything, man. Well, I don’t know if I want to go watch that congressional hearing again. So, yes.

00;13;17;09 – 00;13;25;05
CODY
I mean, it’s warm enough you strike with some ice creams, come back, watch the congressional hearing and enjoy yourself. Tonight. It’s going to be 105 deal. That’s hot.

00;13;25;07 – 00;13;29;17
ANDY
That’s really hot. Like Death Valley. It was like 130 degrees or whatever.

00;13;29;19 – 00;13;50;08
CODY
Yeah, it’s almost as hot as this show is. Shh. All right, everybody in with that awesome joke. We appreciate you guys tuning in, watching for any of myself in tech talk. We would appreciate some more charts if you want to see one next time that we have not looked at in a while, please email us. Call us whenever you get a hold of us.

00;13;50;11 – 00;14;21;13
CODY
But until next week, have a great weekend. Even better, we stay inside. It’ll be hot. But you know, that just gives us an ever act. We partner with every corner of the agriculture industry, from dairy to livestock crops and agribusiness, to deliver intelligent supply chain and risk management solutions. We are ever at everything agriculture. Learn more at w w w that ever dot ag slash everything.