Chart Analysis: Today's NinjaTrader Chart of the Day focuses on Electronically Traded Funds (ETF's). ETF's have grown in popularity over the past few years as an opportunity for investors to actively trade a variety of various markets that used to be only open to commodities, futures and forex traders. One in particular is $CORN, which is an index that trades based on weighted averages of the closing settlement prices for 3 Corn Futures contracts traded at the Chicago Board of Trade ($ZC_F). Other popular agricultural commodity based ETF's include $SOY (Soybeans), $VEGI (Global Agriculture) and $WEAT (Wheat).
$CORN experienced heavily traded volume this summer as prices soared to historic highs during the U.S. drought of June, July and August. The high volume levels can be visualized with NinjaTrader's VolumeUpDown and VOLMA (Volume Moving Average) indicators below the chart bars. As prices on both the daily candlesticks and weekly box outline bars continued to reach higher highs, volume in the amount of shares traded continued to be well above the 10 period volume moving average. As we inch closer to the New Year, $CORN prices are trading in a tighter range and with much less volume. Our NinjaTrader Swing indicator (purple and blue dots) above and below the price bars will plot the current swing high and low points and generally visualizes areas of potential support and resistance. As this market continues to channel, investors seeking potential trade setups may look to fundamental analysis and agricultural reports to determine whether this market will turn bearish or bullish for 2013.
All indicators utilized in this analysis come pre-built with every free NinjaTrader installation and powered by Free End of Day data from Kinetick. As always, happy trading and all comments are welcome such as what additional indicators that you would add to this chart? And, do you currently add ETF's to your investment portfolio? MrTopStep has excellent educational resources including the NinjaTrader Chart of the Day to assist you in discovering great opportunities for Futures, Forex, Stocks and ETF's.