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Home > Commodities
Commodities: Focus on Four Markets
Elliott Wave International discusses the reasons why four specific commodity may be offering a potential opportunituy right now.

By Nico Isaac
Mon, 10 Mar 2008 10:50:46 ET
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On most days, the job of Daily Futures Junctures' editor Jeffrey Kennedy is a lot like the game “Where’s Waldo?” With total concentration, Jeffrey keeps his eyes glued to the over-crowded, buzzing commodities marketplace, looking for the one price chart that pops out to say “HERE” is a potential near-term opportunity.  

On very rare occasions, however, multiple markets burst out of the crowd, displaying several potential trade set-ups. In tonight's (March 6) Daily Futures Junctures, Jeffrey Kennedy excitedly reveals that now is such a time.

Coffee: Check it: On March 5, java got a jolt to a 10-year high. Why? “Brazil’s output this year will serve only to ‘replenish low stocks,’” reported Arizona Republic, AZ. A day later, however, coffee prices fell as – so says another news source – “Estimates of Brazil’s crop came in above expectations.” (DJ Newswire)

Any questions?

Well, according to the Jeffrey’s March 6 DFJ analysis, coffee’s up-down price action is “simply” one stage of a developing contracting triangle; an Elliott wave pattern well known for its “dramatic” resolutions.

Orange Juice: In the February 29 Daily Futures Junctures “Weekly Wrap Up” Jeffrey Kennedy presented two compelling close-ups of O.J. with a bold arrow pointing DOWN. Now, with prices souring to a one-week low, the mainstream analysts are waiting to see whether “much-needed rain” will help the dry groves of Florida’s citrus belt.

One look at two of the March 6 DFJ’s Orange Juice charts, however, and you can see right now what lines are next in the “Elliott Wave script.”

Soybean Complex: The fundamental picture here is as mixed up as a bag of soybeans. On one hand: “Overbought conditions and word economic uncertainties could lead to some sharp price declines.” But, on the other hand, “Strong demand and tightening supplies remain supportive features.”

Does anyone have a penny we can toss?

For an Elliottician, there is a better way to determine whether the recent limit-down action in soybean oil and soy meal is here to stay: Count the waves. If the sell-off unfolds as five waves, the larger trend is down; if it’s three, the slide is only corrective. AND, in the March 6 DFJ, that’s exactly what Jeffrey Kennedy shows you.

So, what are you waiting for? Get the complete March 6 Daily Futures Junctures text – where Jeffrey also tests out a new, more expansive nightly Video Update – today. Instant access details are below.

Tags: futures trading, soybean oil
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