May-June is not summer, nor is it spring. It's the unofficial "fifth" season, known to many as "Wedding" season. And, after months of will-she, won't-she speculation, the date has finally been set: The commodity sector will walk down the aisle to meet her long-awaited groom. The question is -- Will he take the diamond ring out of his nose (i.e., Bull) or from his paw (i.e., Bear)?
The Procession: In the opening "Featured Market" segment, Futures Junctures editor Jeffery Kennedy hits not one, not two, but three notes on the organ of long-term opportunity. Here, Jeffrey revisits his original forecasts of Cocoa, Sugar, and Lean Hogs and reveals how each Elliott wave script has played out. As the "individual wielding the tool" of the Wave Principle, he nailed the substantial sell-offs endured by both soft markets over the last year, while his bearish lean hog call required a major revision.
Now, he presents newly labeled price charts and in-depth analysis showing where these three markets are set to trend.
The Bridesmaids and Groomsmen: Next up is MFJ's "Wave Watch." Here, Jeffrey shows you two labeled snapshots per 12 markets, each with a clearly marked target and bold arrows pointing to the next likely direction for prices. Off the top are these familiar favorites:
Coffee: June 2010 MFJ "Featured Market" said: "If the patterns and [historical] analog reviewed in this month's issue do indeed repeat, then coffee's price could easily double from current levels."
From its June low, coffee more than doubled in a 78% surge to 30-year highs before turning down in early May.
On a shorter horizon, the May 2 Daily Futures Junctures set the near-term stage for coffee's decline and wrote: "A break of 294.70 is needed to confirm that wave (b) is complete and that wave (c) is under way to below 286.85 [Next targets: 278.70, and 256]."
Cotton: The September 2010 Monthly Futures Junctures caught cotton's amazing climb before it began with this timely insight: "The internal subdivisions of these price moves argue for additional strength in the months to come. In fact, I wouldn't be surprised to see strength persist into the first quarter of 2011."
Cotton's seven-month uptrend to the April high did indeed "persist into Q1." Now, the new MFJ reveals what Q2 could have in store.
Orange Juice: On May 26, OJ rocketed to its highest level in four years. And, according to the experts, one factor is behind the market's gains: "OJ Prices Soar On Hurricane Speculation" (Bloomberg).
YET, two months before the start of the hurricane season, the April MFJ "Wave Watch" chart showed OJ prices set to double in a powerful rally to the 2.00 range. The May-June publication takes it from there.
Soybeans: The November 2010 Monthly Futures Junctures saw the weak streak in soybeans coming to an end: "The sell-off from the November 2008 peak was wave (4) of a still developing motive wave that should push prices to the $14-$15 bushel range." Now, the May-June MFJ charts show whether the gains in this grain are set to continue.
Continuous Commodity Index: "Sell in May" has been the motto for this index. May 5 saw the CCI's sharpest one-day plunge in two years, and it's been downhill from there. Shock? Hardly. Five months ago, the December 2010 Monthly Futures Junctures presented the following close-up of the CCI that showed prices set to rally to the 742 range and then reverse.
The new MFJ takes it from there.