This grain commodity exhibits very good setup conditions for the second week (W2) of October. The public and brokers sentiment is very low, the large commodity traders and funds are heavy sellers, and the small traders are very short. Our position is always contrarian to what the public is doing, to what the brokers are recommending in their newsletters (in this case they are recommending to sell wheat), and to what the small speculators are doing (currently heavy sellers). In summary, the basic setup conditions are:

Conditions:
-Commercials: high > 80%
-Sentiment: low < 20%
-Large Traders: low <20%
-Small Traders: low < 20%
-Fundamental valuation: undervalued <20%
-Stochastic: oversold <20%
-Seasonal: uptrend
-ADX: low < 20%

Analysis:
-This commodity exhibits excellent setup conditions for an uptrend but we also need to wait for the right entry. The commercials are bullish, the commodity has been oversold as seen by the stochastic (it has lost $37,000 per contract since March 08), it is fundamentally undervalued at the moment, the ADX indicates a downtrend that lacks integrity, and the seasonal tendency is favorable. In summary, we have excellent setup conditions for Wheat. This is definitely a commodity we need to follow very closely during the upcoming second week of October (October W2) and have our entry technique ready to jump in.