This Sunday, June 20, is Father's Day, the holiday also known as "Garish Gift Day." So, instead of giving dear ole' dad that hundredth silk neck tie or singing fish wall mount, try this on for size: The gift of opportunity in the world's leading commodity markets.
The brand-new, June 2010 Monthly Futures Junctures (MFJ, for short) has just been released. And in it, EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy reveals what's in store for these (and more) recognizable names:
"Featured Market" is first up.. In this section, Jeffrey identifies the one commodity whose wave pattern screams, "Change now!" That market is Coffee. With seven labeled price charts and five pages of in-depth commentary, Jeffrey reveals why the slew of evidence is strongly in favor of one kind of move.
Next up is "Wave Watch." Here, Jeffrey provides two labeled snapshots per 11 markets, each of which include clearly marked up/downside objectives and bold arrows pointing prices in their next likely direction. Off the top are these familiar favorites:
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 DFJwrote: "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 a nine-month low before pausing. What now?
Sugar Sours: In the days leading up to the early February 2010 peak, the January 25, 2010 Daily Futures Junctures 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."
From there, sugar prices plunged in a 50%-plus sell off to one-year lows before pausing. Now the June 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. Next, the May 2010 "Wave Watch" showed cotton set to turn down in a third wave, and that's precisely what happened.
The June 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 MFJsaw 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 June 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 June MFJ steps in.