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Corn And Wheat: Never A Dull Moment
Surprise? Yes. Unprepared? No way.
"What separates a pro from an amateur? The ability to not throw a fit when the market doesn't go your way! Assess, adapt, relabel and move on!" – J.B., a Club EWI member.
Expecting markets to always behave according to your trading models is futile, and experienced traders know that. Being prepared to "assess, adapt, relabel and move on!" is an excellent piece of advice, because markets will throw you a curve ball more often than you'd expect.
Curve balls in the market can be a welcome sight or an uninvited pest; but either way it's important to be prepared for them. Elliott Wave International's Futures Junctures Service has the tools to keep you in the strike zone.
Corn futures have done just that recently. As Elliott Wave International's Daily Futures Junctures editor Jeffrey Kennedy says in the June 30 issue, "What does today’s selloff in Corn mean? For starters, it proves me wrong."
There's that "curve ball." And now comes the "assess, adapt, relabel and move on!" part. Take a look at these two Elliott wave patterns:
Basic flat
Expanded flat
Both patterns are three-wave moves – corrections. Except, in expanded flats, wave B ends beyond the start of wave A.
"Expanded Flats" writes Jeffrey in the June 30 Daily Futures Junctures, using Corn futures as his example, "are easy to identify because waves A and B of this pattern subdivide into three waves each. Moreover, wave B ends past the origin of wave A.
"Now, most of you already know that wave B of an Expanded Flat is typically limited to a 1.382 multiple of wave A. But do you also know what the most common Fibonacci multiple for wave C of an Expanded Flat is? If not, the answer is 1.618."
Based on this information – a nuance of the developing wave pattern and a common Fibonacci-derived price target – Jeffrey then makes a price projection for the developing move in Corn. (And no, it's not a bullish one, at least for the time being.) Have a look at what he's thinking will happen next:
Jeffrey has assessed, adapted, relabeled. Now, he moves on. The markets may change; but no matter what changes they make, you can always be sure about one thing: Jeffrey will be ready for it.
Commodities are never dull as Monday's price action showed. But the full depth of fascination they have to offer is best viewed through the lens of expert technical analysis; and there simply isn't a finer source of market analysis and forecasting for commodities than EWI's Futures Junctures Service.