For the top half of the planet, summer is upon us. And, it ain't just the temperatures outside that are set to reach boiling point. According to EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy -- the opportunities in the world's leading markets are also heating way up.
From softs, livestock, food, and fiber, Jeffrey's brand-new May 2010 Monthly Futures Junctures (online now) reveals what's in store for these (and more) recognizable names:
First up is Monthly Futures Junctures' (MFJ, for short) "Featured Market" segment. Here, Jeffrey revisits the top three Grain Markets -- corn, soybeans, and wheat -- and reveals how the "seeds" of April and May will set the field of opportunity ablaze with new growth. With five pages of in-depth analysis and EIGHT labeled price charts, Jeffrey's overall message is clear: Wave counts across-the-board suggest that all three markets are headed in ONE, and only one direction.
Next up is "Wave Watch." Here, Jeffrey provides two labeled snapshots per 11 markets -- each of which include clearly marked trendlines, up/downside objectives, support/resistance levels, and bold arrows pointing prices in their next likely direction. Off the top are these familiar favorites:
Coffee Cools: Last December, coffee prices were sizzling to a 15-month high on what the mainstream experts called a "strong fundamental back drip." The December 17, 2009 Daily Futures Junctures (the short-term sister publication of MFJ) failed to agree. There, Jeffrey sounded the bearish alarm and wrote: "The rise is now waning. This sets the stage for an upcoming five-wave fall. One more modest high above 149.50 will more 'cleanly' form this important market peak."
Now, the May "Wave Watch" reveals if the recent seven-month low is the end to the market's downtrend
Cocoa On Course: Check it:
- December 2009 MFJ "Feature" wrote: With prices at a 30-year peak, "It's time to prepare for a trend change. Cocoa's price chart is a flashing strobe light. With five waves up and done, expectations call for a selloff to near 3000."
Prices fulfilled this script to a "T," and then some.
- Next, the April 20, 2010 DFJ wrote: "I anticipate a time consuming corrective advance that will ultimately push prices into Fibonacci resistance at 3143-3231. Once this area is achieved, we'll look for the resumption of the downtrend."
Again, cocoa soared right into the cited area, only to restart its slide in early May to the nine-month lows we see today. What now?
Sugar Sours: In the days leading up to the early February 2010 peak, the January 25, 2010 DFJ hit this sour note: "The large five up constitutes the last big leg up of an even larger pattern, so that tells us that this upcoming market top should set the stage for a large and time consuming fall. Bottom line: look for emerging evidence of a bearish opportunity." Now, the May MFJ puts the long-term trend into perspective.
Cotton Climbs: The January 2010 MFJ "Wave Watch" presented an exciting picture that showed prices nearing the end of wave (4) down. Once complete, wave (5) was set to introduce a powerful rally to new contract highs. In no time, cotton stole the show with prices soaring to a new, all-time high.
The May MFJ spins the long-term yarn.
Corn: Check out the following sequence of analysis:
- June 2009 MFJ wrote: "The advance that began in December is complete. This means that the stage is set for renewed selling that should push prices below the 2008 low. This is an intermediate tradable top." A 35% plunge followed to below the 2008 low.
- September 2009 MFJ saw the downturn coming to an end and suggested a "rally" was due to take prices back above the $4/bushel level. From there, prices rallied strong until petering out in a multi-month long, sideways trend.
- January 2010 MFJ "Wave Watch" showed prices finally set to break out to the downside -- and that's precisely what happened. Now, the May MFJ takes it from here.
Meaty Matters: In the April 2010 MFJ "Feature," Jeffrey foresaw a major reversal for two key meat markets and wrote:
- Lean Hogs: "Prices area currently trading in a major reversal zone. I believe odds strongly favor that a significant decline in this market is in the making. Moreover, wave patterns support this outlook."
- Live Cattle: "After a triangle thrust up in prices to beyond the March 96.300 peak, the impulse wave will be complete. Then the stage will be set for a correction of the advance."
Now with prices in both markets straddling multi-month lows, the May MFJ steps in.
Believe it or not, that's just the tip of the topsoil. The May 2010 MFJ presents labeled price charts for FIVE other markets, including the Continuous Commodity Index. Not to mention a practical "Traders Classroom" lesson on how to use "Double Spinning Tops" chart pattern to foresee major trade set-ups.