I first want to emphasize the importance of scaling into sales and positions. Trying to time and predict market tops and bottoms is next to impossible and usually leads to disappointment. Therefore, as with any market indicator, it's best to have a scale in approach to decision making.
When looking at the Heat Maps, one should immediately recognize that a strong green visual represents a likely bullish or higher market potential in the future. Conversely, we can assume that a strong red visual represents a likely bearish or lower move in the future.
Here is a price chart and Heat Map of the 2016 corn market.
By scaling in sales during the period where the Heat Maps were producing a reading of 75% and higher, you would have averaged around $3.60 cash in Northwest Iowa during the summer of 2016. The calendar year cash average for 2016 was $3.19 per bushel in Northwest Iowa.
The 2016 Corn Heat Map section below is the same information displayed in the chart above. You can see from the middle of May through the end of June, the Heat Map was indicating over bought conditions. During this time period, there was a lot of market rhetoric about a wet eastern cornbelt, shifting corn acres to soybeans, heavy rainfall in Argentina, numerous summer drought projections, and a drought reduced Brazil crop. However, we overcame all of this to grow a record crop in the U.S. and ended with massive ending stocks.