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Post# of 51787
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techcharter

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techcharter

Re: None

Thursday, 03/28/2013 11:00:21 PM

Thursday, March 28, 2013 11:00:21 PM

Post# of 51787
Corn Arbitrage? a little help please

Corn spot prices took a 26% hit today, but the Teucrium Corn ETF only fell 7%. I realize how the ETF blends futures. Using the end of day futures prices and calculating the net asset value manually, I get a 5-6% decline. Corn ETF should bounce up 1-2% tomorrow.

Then I look at the charts...

The ETF needs to drop 15% to be at the same relative level as the spot price, just below the June/July 2012 lows. I find it hard to believe wave 3 of 3 could last a single day. Especially when a decade long ending finished about 6 months ago.


http://stockcharts.com/h-sc/ui?s=$CORN&p=D&yr=3&mn=0&dy=0&id=p85177435930


http://stockcharts.com/h-sc/ui?s=CORN&p=D&yr=3&mn=0&dy=0&id=p85172364671
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