Halloween has arrived early! O.K. Not really. But for those who knock on the door of the brand-new October Monthly Futures Junctures (published October 17), the analysis of the commodity markets will be a treat indeed.
First in the bag: Monthly Futures Junctures’ “Featured Market” segment. Here, Elliott Wave International’s chief commodity expert Jeffrey Kennedy steps out of his “normal sphere” to shine the spotlight on the Japanese Yen. And for good reason: In three pages and six price charts, Jeffrey makes a compelling case as to why an “exceptionally exciting” move could be in this currency’s future.
Next is MFJ’s “Wave Watch.” In this section, Jeffrey provides two labeled snapshots per 12 markets -- each one includes clearly marked trendlines, up/downside objectives, support/resistance levels, and bold arrows to show the next likely direction for prices. Off the top are these familiar favorites:
SUGAR Daddies: Last month, the September 2008 Monthly Futures Junctures included a special “Feature” on sugar that wrote: “The opportunity to observe the triangle come to completion in the days ahead is a rare treat. The pattern argues for a sizable sell off in price.” Now, with prices souring to a ten-month low, the new MFJ shows where, and when, the downtrend may end.
Pocket COFFEE: The July 2008 Monthly Futures Junctures’ “Feature” commentary on coffee applied three simple concepts to reach ONE bearish conclusion: “The larger trend is down. We identify the June peak as a tradable top and expect a sell off to below the May low.” Flash ahead to today: The mainstream experts are baffled by coffee’s slide to a 15-month low: “The slump has absolutely nothing to do with fundamentals. There is no excess in any country” (Bloomberg). MFJ brews the stronger story.
COTTON Candy: Consider the following news items from October 10-14:
- “A prolonged monsoon season” delays cotton harvests in India, the worlds second biggest grower.
- The US Department of Agriculture reveals a 13% drop in U.S. cotton acres from 2007
- An ongoing lawsuit between cotton growers and one of the biggest U.S. cotton merchants could “have a significant impact on production.”
Yet -- cotton prices wilted to a two-year LOW on October 14. Any questions?
(What’s Next For Commodities? The October 2008 Monthly Futures Junctures is hot off the virtual press and presents the most comprehensive and objective coverage of the long-term trend changes in store for the worlds leading markets. Act Now)
Candy CORN: Before crude oil reversed from its July 11 peak; before the CRB index turned down from its July 3 peak; before the “economic turmoil” reshaped the U.S. financial sector -- January 2008 Monthly Futures Junctures laid out a long-term picture of corn and wrote: “The advance will continue to ultimately beyond the July 1996 peak (554) onto a much higher level, closer to 725-750. [Then], we expect the move to be completely retraced once complete.”
From there, prices rocketed to an all-time high in June, followed by a violent sell-off that completely erased the year’s entire 40%-plus rally. We rest our case.
Live CATTLE Jerky: Speaking of corn: What happened to the widely popular notion that soaring corn prices -- the leading ingredient in livestock feed -- were slaughtering the live cattle market? Higher feed costs = lower demand, so the story went. Yet -- right now, corn prices stand at a 10-month low, right alongside a new contract low in live cattle. MFJ is grade A analysis.
Believe it or not, the bag of commodity treats is only half-full. So, what are you waiting for? Unwrap the long-term opportunities today via a risk-free subscription.