What's yellow in color, made of rows, and can be a safe-haven asset in times of economic uncertainty?
For most people, the go-to-answer is gold. But, according to recent news sources, a lesser-known "disaster hedge" has popped up out of the ground -- literally -- in corn. Here, this August 19 MarketWatch fills in the details:
"The yellow metal is not the only commodity that can offer a refuge for investors... The long-term supply/demand fundamentals for grains are quite strong. Corn futures trade 13% higher year-to-date, including a 7% jump month-to-date."
Anyone with eyes can whip out a chart of corn prices over the last six months and see the grain's magnificent gains. Elliott wave analysts, however, takes the picture a step further and tells you what is only clear to the eye of technical objectivity: i.e., whether corn's uptrend is one of long-term degree, and how high prices could go.
Here, EWI's
Commodity Specialty Service editor Peter DeSario stands virtually alone. In his latest "Daily Update" on corn, Peter presents the following chart of corn that puts the market's soaring price action into astonishing perspective.
If you know Elliott, this chart is as exciting as they come, because you see one of the most promising Elliott wave patterns underway -- and not once, but twice over a five-month period: A diagonal triangle. They consist of five overlapping waves labeled 1 through 5, where each one subdivides into three smaller waves. Diagonals appear in waves 5 of impulses or C-waves of corrections.
"December corn completed a diagonal triangle wave C from the November low last year and a zigzag advance from the June low. [A decline ensued to the July 1 low] with prices perhaps tracing out a diagonal triangle from the low of July 21."
Commodity Specialty Service then reveals to you the larger implications of the potential diagonal now underway in corn.