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Three Commodity Markets: One Pattern
Passengers on board the mainstream "fundamental" train en route to COTTON have been severely derailed. Case in point: From October 10 through October 16, all of the following cotton-related news items were released:
- “A prolonged monsoon season” delays cotton harvests in India, the world's second biggest grower.
- The US Department of Agriculture reveals a 13% drop in U.S. cotton acres from 2007.
- One of the largest U.S. cotton merchants (Reinhart, Inc.) filed for bankruptcy, all the while facing an ongoing lawsuit with cotton growers that "could have a significant impact on production." (AP)
YET – despite the barrage of bullish factors, cotton prices wilted to a two-year LOW on October 16.
In an effort to explain why the market veered off its expected course, the usual suspects offered the following reason: “Cotton fell to a new contract low as forecasts for global economic weakness continued…Demand is the big issue for cotton at this point – in recessionary times [it’s] very vulnerable to reductions in usage by consumers. Cotton prices will come up when equities do.” (Futuresource.com)
Really? Because after cotton surged to a two-week high in the morning hours of October 20, it turned right back down. YET, on that same day, the Dow Jones Industrial Average ended the session more than 400 points HIGHER.
(Commodity Spotlight Shines On Cotton. In the October 23 Daily Futures Junctures, Elliott Wave International commodity expert Jeffrey Kennedy reveals whether the bullish fiber will return to cotton. Get the Full Story now)
Don't lose your way to opportunity in Cotton. Right now, the October 23 Daily Futures Junctures presents original price charts and objective analysis of the market that shows a classic "Fourth Wave" pattern underway.
And, according to Daily Futures Junctures' editor Jeffrey Kennedy, knowing the depth and duration of this pattern is quite simple. In his words: "When wave four is quick, its retracement of wave three is deep. Conversely, when wave four is time consuming, its retracement of wave three is most often shallow."
The best part is, Jeffrey also identifies the wave four configuration underway in two other key commodity markets: Orange Juice and Feeder Cattle.
So, what are you waiting for? Get on board the Elliott Wave train to opportunity today. Subscribe risk-free.