According to the mainstream experts, Corn prices are tied to more outside forces than a marionette doll. In the last 24 hours alone, the usual sources have linked the grain's movements to heavy showers in the U.S. Corn Belt, the rapid re-emergence of Swine Flu fears, and ongoing gains in crude oil.
Think about it: ALL of those factors have been a complete "shock" to the public: Harder-than-expected rainfall, a "shocking" pandemic, and "surprising" gains in oil despite a global economic slowdown. So, my question is this: HOW can unpredictable forces create a predictable market?
Answer: They can't.
On the other hand, social mood -- which unfolds in clear, calculable Elliott wave patterns within a market's price chart -- CAN. And, since the start of 2008, EWI's chief commodity expert and Futures Junctures Service Editor Jeffrey Kennedy has used this guide to stay one step AHEAD of the major turns in Corn's trend.
Here, the following archive of Jeffrey's analysis stands alone:
January 2008 Monthly Futures Junctures laid out the long-term picture in corn and wrote: "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."
After the first part of Corn's Elliott script had been fulfilled when prices rallied beyond the July 1996 peak, the second half was yet to come. Here, the August 2008 Monthly Futures Junctures provided the following blue print:
"Corn has put in a multi-year top. The historic extreme I was looking for is in place..."
A five-month selling spree to a three-year low followed. As the following two-year close-up of Corn shows, Jeffrey's long-term analysis was right on target.
Now, since their late December 2008 low, Corn prices have been moving in a narrow, sideways manner with no significant up-or-downside breakouts. For Jeffrey, this is the classic signature of one kind of move: A contracting triangle.
Below is an ideal model of this particular pattern:
And, in the May 20, 2009 Daily Futures Junctures (online now), Jeffrey reveals how the triangle wedge in Corn signals a "sharp thrust" ahead in one direction.