Fundamental analysis of market behavior suggests a linear, "straight-line," relationship between the news and markets: Factor “X” causes market “Y” to move in direction “Z.” In reality, however, there are more switchbacks along the mainstream financial road than an Alpine ski run. Take, for instance, the following news reel of fresh back-to-back commodity-related posts:
“Corn: Very Weak Basis For Rally On Weak Export Demand” -- Versus -- “Corn Outlook Up: Solid Demand”
“Wheat’s fundamental storyline continues to look bearish because of large supplies.”-- Versus -- “Wheat Rises To 7-Week High. Charts look great and funds are buying.”
“Sugar Review: Closes at one-year low as analysts continue to downgrade the extent of world supply deficit.” -- Versus -- “Sugar Rises Most In Week. From a supply and demand perspective, we are historically in a tight market.”
“Cocoa: Specs Push to 11-week high on Demand Hopes” -- Versus -- “Cocoa Falls On Speculation Demand Will Dwindle.”
“Crude Oil Loses Ground as traders feared strong economic data may push the Federal Reserve closer toward eventually raising interest rates.” -- Versus -- “Oil Advances on Economic Recovery.”
How do you get a strong foothold In the world constantly changing fundamental ground?
Answer: You don't.
Hence, the alternative: The clear and objective terrain of technical methods, fortified by Elliott wave analysis. For this, the April 23 Daily Futures Junctures’ “Weekly Wrap-up” is the one-stop source.
There, EWI’s chief commodity analyst and long-time Futures Junctures Service editor Jeffrey Kennedy presents in-depth commentary and labeled price charts on these top market contenders:
Coffee: Jeffrey reveals whether the recent advance has the signature of a bear-market countertrend correction or a new bull market. The candlestick price chart shows a “spinning top” bar formation, a classic “igniter” of change.
Cocoa: The price rise of late has been sharp. Jeffery’s candlestick price chart shows you whether the strong advance has been confirmed by equally strong volume. Also, the RSI (relative strength indicator) has just surpassed a prior extreme of the last seven months. All in all, the puzzle pieces form a “very exciting picture” for this week.
Grains Complex: Wheat, corn, and soybeans are “at the point where” major moves should be taking hold. Jeffrey even identifies a possible time window for this event and critical levels that need to give way to solidify his overall Elliott wave count.
Lean Hogs' “wave patterns are very exciting.” And for good reason: A diagonal triangle has unfolded clear as day. Elliotticians know this pattern to precede dramatic moves. In sum: “April and May will be pivotal months” that could launch a trend that lasts well into next year.
You name the market: crude oil, copper, cotton, and more. And the April 23 Daily Futures Junctures “Weekly Wrap-up” has the near-term story in full, objective detail. Get instant access today via a risk-free Futures Junctures Service subscription. (You also get instant access to the big-picture analysis in the just-published April Monthly Futures Junctures.)