Spotting Sharks in Corn & Oil

sharknado-attack

The sight of sharks in a corn field brings to mind the new cult movie Sharknado. How else but in fun fiction could a Shark end up in a corn field or an oil well. Well broaden your thinking because there is a Shark showing up there right now.

corn oil

The chart above is a ratio chart of the Corn ETF, $CORN, against the Crude Oil ETF, $USO. And it has a Shark harmonic playing out. The bearish Shark harmonic triggered last Friday when the price ratio moved back down through point ‘D’. Now the targets lower come at a ratio of 0.85 and then 0.77 if the first level does not hold.

These moves are over 6% and 16% so they could make for a lucrative trade. It can be accomplished by either a Corn move lower or a reversal higher in Oil, or both. At the moment Corn is starting to roll over with Oil continuing its downward movement.

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