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Commodity Opportunity: Go Hog Wild!

By Nico Isaac
Wed, 26 Nov 2008 16:45:00 ET
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While most folks out there have turkey on the brain for the upcoming holiday -- Elliott Wave International's chief commodity expert Jeffrey Kennedy is thinking of the other white meat: Pork. Namely, Jeffery has just identified a near-term opportunity in pork belly futures.
Here's the gist: On November 26, pork bellies bounced to their highest level in six weeks. As for why: Well, the mainstream experts served up more "fundamental" side dishes to explain the market's rise than a Thanksgiving dinner. Off the top are these popular favorites:
  • "Outside market bullishness" including an "upswing in US stock markets."
  • "Positive lean hog influence."
  • "Chicago Mercantile Exchange data showing that "pounds of bellies moved into exchange-approved warehouses came in just shy of last year's number, which might be uses as neutral to slightly friendly for futures."
  • And, "Friday's (November 21) monthly U.S. government cold storage results for hams and total pork during October proved mildly supportive for hog futures."
Suffice it to say: They all miss the gravy train in an attempt to "explain" price action that has long since been underway. The most recent uptrend in pork bellies did not get started on November 26, or November 21 even. But rather, November 18.
(The Next Big Move In Pork Bellies Is… In the November 26 Daily Futures Junctures, editor Jeffrey Kennedy's original price charts and objective analysis reveal where and when the bounce in bellies could end. Act Now.)
As for catching the rise in pork bellies BEFORE it took off -- the November 14 Daily Futures Junctures "Weekly Wrap-up" set the stage for an imminent rally via the following price chart. (Some Elliott Wave labels have been removed for this publication)
One look at the close-up above and there's no mistaking the pattern at large: A classic diagonal triangle underway since February. Here, Elliott Wave Principle – Key to Market Behavior fills in the blanks:
"A diagonal triangle is the only five-wave structure in the direction of the main trend within which wave four almost always moves into the price territory of (i.e. overlaps) wave one... and imply one thing: Dramatic reversal ahead."  
A powerful rally to a six-week high later, the November 26 Daily Futures Junctures revisits pork bellies to reveal where the trend may end. (Not to mention, the latest DFJ also includes in-depth analysis of the near-term trend changes in store for Soybean Meal.)
So, what are you waiting for? Give thanks for clear and objective insights into where the leading commodity markets could be in the days and weeks ahead. Subscribe risk-free to Futures Junctures Service today.

 

Tags: pork bellies, futures, Commodities, soybean meal, Daily Futures Junctures

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.