Elliott Wave International | World's Largest Market Forecasting Firm Since 1979
Please Login
   
| What's My Password?
 

Home > Commodities
Soybeans and Corn: The Big Splash
How do you know at what price level you should place a protective stop?

By Vadim Pokhlebkin
Mon, 31 Mar 2008 18:00:00 ET
Add to Facebook Add to Twitter Add to Facebook Printer Friendly Get the RSS feed Add to more social media services
Get Elliott wave insights like this article when you sign up for EWI's free email newsletter, The Independent. It will change the way you view the markets forever. Privacy

Two markets made a big splash in commodities news today (March 31): Soybeans and Corn.
 
"Soybeans, reported Bloomberg, "fell the maximum allowed by the Chicago Board of Trade after the U.S. government said farmers will boost planting by 18 percent, more than analysts forecast."
 
Corn, on the other hand, "soared to a record after the U.S. government reported farmers will reduce acreage more than analysts forecast to make room for soybeans."
 
Sounds like a good time to sell Soybeans and buy Corn, right? Maybe – but what if Soybeans have already exhausted the downside potential with Monday's plunge? And what if Corn is ready for a break after reaching a new high?
 
In other words, what if you're wrong? And more importantly, if you are wrong, where do you get out of a losing trade?
 
Fundamental analysis is not equipped to answer this question. News reports have their place, but when it comes to finding a price point to place your stop loss, news is of little value.
 
Enter the Elliott Wave Principle. As our own Daily Futures Junctures editor Jeffrey Kennedy points out in tonight's (March 31) issue, "One of the three cardinal rules of the Wave Principle is that wave two may never retrace more than 100% of wave one." Here's how this rule is represented graphically:

By applying this rule in your trading, you can always determine the exact price point at which your wave count is wrong – and thus the point of stop loss. 
 
Jeffrey did just that in his Friday's Weekly Wrap-Up when he identified the 1207 price level in Soybeans as key. Now that it was breached in Monday's trading, "wave two retraced more than 100% of wave one, thereby negating the labeling I posted in Friday's Weekly Wrap-Up."
 
Does this mean that Soybeans will keep falling like a rock? Not so fast. Read Jeffrey Kennedy's complete analysis online now (risk-free) and learn his surprising conclusion. You also get his latest thoughts on Corn – and you may find those equally surprising.
 
The March 31 Daily Futures Junctures is online right now, yours risk-free for 30 days; just scroll below for details on how to get it.

Tags: soybean futures, corn futures
Rating: - based on [10 rating(s)]
Rate this content:
  


The Futures Junctures Service is the most comprehensive futures service you can buy – period. You get an opportunity-based service that's updated daily, along with monthly intermediate-term coverage of a variety of markets, plus a host of financial insights.

We've put together a very special offer that's packed with our famous newsletters, two of our best-selling books and editor Jeffery Kennedy's new eBook The Trader's Classroom Collection.

So here’s what we're offering:

  • A copy of the NY Times bestseller, Conquer the Crash by Robert Prechter
  • One month of Monthly Futures Junctures
  • One month of Daily Futures Junctures
  • One month of The Elliott Wave Theorist
  • A copy of The Trader's Classroom Collection eBook
  • A copy of the Wall Street bestseller, Elliott Wave Principle – Key to Market Behavior by Robert Prechter and A.J. Frost
  • Subscriber Only benefits

Order Now, and this special offer — worth more than $190 — will cost you only $59.
(Plus shipping and handling) After the first month, we'll automatically bill your credit card $177 per quarter.
For more information about each specific item, click here.

Buy Now!  More Information

If you want to order by phone, call our customer service representatives at 800-336-1618 (from within the U.S.) or 770 536-0309 (from outside the U.S.). When you call, please refer to code FJS12-FRCOM.

We're so confident you'll love this service that you can try it risk-free for 30 days. If you aren't absolutely thrilled with it, just ship both books back to us in good condition and get a full, unconditional, cheerful refund (minus S&H). You can also get a pro-rata refund at any time during your subscription.

With our convenient automatic billing, we'll continue to bill your credit card every quarter until you tell us to stop.