Monday, July 27, 2009

Commodity Roundup for July 27, 2009

As intraday traders we use the price action the market provides as a way to gauge and judge how stocks are trading. Today their was divergence between Archer Daniels Midland (ADM) and the market and this was seen early on in the trading day

If you look at the chart below you will see that ADM had been strong all day since the opening bell. ADM has been in a major uptrend the last couple of weeks and looks great on the daily chart. As the market sold off to the intraday low of 969, ADM was showing strength and trending upward. As the day progressed, ADM continued to put in higher highs and higher lows, which makes an excellent candidate for a stock to play on the long side.

Green = ADM
Red = S&P Futures

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