Once the revered rock star of the financial world, the commodity sector has gone from Fame to Shame. Now, the question is: Will commodities once again walk the bullish line in 2009?
The brand-new January 2009 Monthly Futures Junctures (MFJ) has the most original and objective answer out there.
In the opening “Monthly Feature” segment, Futures Junctures editor Jeffrey Kennedy plucks one market off the vine whose wave patterns are ripe for the picking. In this case: Cotton. On three pages and with four compelling price charts, Jeffrey identifies a dramatic, decades-long contracting triangle underway -- a "straightforward" sign of whether the November advance is here to stay.
Served up next is MFJ’s “Wave Watch.” Here, Jeffrey provides two labeled snapshots per 12 markets -- each of which include clearly marked trendlines, up/downside price targets, support/resistance levels, and bold arrows pointing prices in their next likely direction. Off the top are these familiar favorites:
Coffee Talk: The July 2008 Monthly Futures Junctures “Feature” saw the bullish caffeine buzz wearing off and wrote: “The larger trend in coffee is down. We identify the June peak as a tradable top and expect a sell off to below the May low.”
A jaw-dropping, five-month sell-off to 26-month lows followed. Now what?
Sugar Story: The September 2008 MFJ “Monthly Feature” told a “sour” sugar story and wrote: “Wave patterns are exceptionally clear… and argue for a sizable selloff. Watch out Below! Sugar may once again be on the verge of another precipitous decline."
Prices plunged to an 11-month in December, and have been "mixed" ever since. The January MFJ steps up to the plate with a new forecast.
Cocoa: The Million "Dollar" Question: When cocoa prices plunged to an 11-month low in mid-November, the mainstream experts cited one culprit: "The stronger dollar weighs on the prices of soft commodities" (AP). Problem: From there, cocoa took off to the upside in a powerful rally to three-month highs, LONG before the U.S. dollar turned down in early December. The new MFJ tells it like it is… and will be.
Wheat & Soybeans: The December 2008 MFJ "Wave Watch" set the stage for powerful fourth-wave rebounds: to above $6 per bushel in wheat, and the $10 mark in soybeans. And, after wilting to respective contract lows, BOTH grains staged significant rallies to their highest levels in three months.
The January MFJ shows whether more gains are to come.
Corn On the C-objective Analysis: Follow along:
- January 2008 Monthly Futures Junctures: "The advance will continue to ultimately beyond the July 1996 peak onto a much higher level, closer to 725-750. [Then] we expect the move to be completely retraced once complete." Prices fulfilled this forecast to a T.
- July 2008 Monthly Futures Junctures: Right as corn prices were nearing their record peak, Jeffrey wrote: "Evidence suggest the five wave move up is complete."
- August 2008 Monthly Futures Junctures: "Corn has put in a multi-year top."
The new, January MFJ grabs the baton.
Live Cattle: 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, both markets hit their respective peaks this summer and spent the following months in a free fall. MFJ is grade A analysis.
Believe it or not, that's just the beginning. The January 2009
Monthly Futures Junctures presents in-depth analysis, original price charts and objective commentary on a total of 12 major markets. Start the new year off on the right footing, with a
risk-free subscription today.