Has the Commodity Bull Run Its Course? | Elliott Wave International

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Has the Commodity Bull Run Its Course?
Our brand-new print-and-video Monthly Futures Junctures reveals the long-term trend underway in 10 key commodity markets.

By Nico Isaac
Fri, 25 May 2012 15:30:00 ET

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The numbers are in:

The S&P's GSCI gauge of raw materials is heading for its first annual decline since the recession of 2008
The Continuous Commodity Index (CCI) stands at its lowest level since September 2010
And, the Reuters-Jefferies CRB index plunged 8% in May alone to a 20-month low

So, has the once-raging commodity bull run its course?

Well, the May 25 release of EWI's brand-new Monthly Futures Junctures offers you some much-needed clarity. In this new issue, EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy hits the ground running with a 14-page print-and-video case-by-case study that reveals whether the larger trend in 10 key commodity markets is indeed down.

First is the new Monthly Futures Junctures “Featured Market” video. Here, Jeffrey expands on his written analysis of the 4 "best-opportunity" markets: cocoa, orange juice, corn, and live cattle. In this video, you get bonus Elliott wave-labeled charts and trading lessons, as well as late-breaking developments learned after the new issue went to press.

Here’s a sneak preview:

Cocoa: Here, Jeffrey reveals the 4 key traits of an Elliott wave contracting triangle:

Develops in five waves
Has a 3 wave substructure
Is contained within converging trend lines
Is manifested by sideways price action

Then, Jeffrey presents several price charts of cocoa, including one of cocoa's exchange-traded fund NIB -- all of which show a textbook Elliott wave triangle pattern underway, suggesting a very volatile summer for cocoa.

Orange Juice: The February 2012 Monthly Futures Junctures identified a terminating pattern in OJ and wrote: "If our interpretation is correct, then OJ just formed a top that will introduce" a major sell off.

Since then, OJ bears have enjoyed a 60% decline to multi-year lows. Now, Jeffrey introduces you to a quarterly price chart of OJ going back to 1980 to show how the recent decline fits into the larger picture.

YOUR 30-DAY RISK-FREE OFFER: Stay a step ahead of the biggest commodity opportunities with the new issue of EWI's Monthly Futures Junctures. Read it online now -- risk-free for 30 days -- plus get the editor's 3-hour educational video series "Jeffrey Kennedy Unedited: Analysis, Trading & Forecasting" FREE. Learn more and start your risk-free subscription today >>

Corn: On May 24, corn prices saw a single-day 4% drop to a 17-month low. In the video, Jeffrey comments on this post-publication event in 2 unique ways:

Jeffrey shows you a 240-minute price chart of corn where he identifies a "1-2, 1-2" wave pattern that "nicely coincides with the larger picture."

Next, Jeffrey examines the technical side of corn via the RSI and MACD. In Jeffrey's own words, "Based on the one MACD signature alone, corn prices should go in [one] direction."

Live Cattle: Here's an exclusive sound byte from Jeffrey:

"The reason I like the live cattle market is that the patterns are so clear and they continue to follow the rules and guidelines of the Wave Principle very, very nicely."

That they do. In the January 2012 Monthly Futures Junctures, Jeffrey said of cattle: "The upside is limited. The next big move will be down." And, from its February peak, the market has steadily declined to the 9-month lows we see today.

As with corn, Jeffrey presents a video-only 240-minute price chart of live cattle. There, he draws a bold, blue boundary line that, if penetrated, would be the first "solid step in the right direction."

Believe it or not, that's just beginning. What follows in print are 8 more pages of Jeffrey's "Wave Watch" section. There, you see 2 Elliott wave-labeled price charts for 10 commodities -- 20 Elliott wave charts total -- each with clearly marked trendlines, up/downside price targets, and bold arrows pointing prices in their next likely direction.

And don't forget the final, video-and-print "Traders Classroom" segment.

So, what are you waiting for? Get instant access to the entire story via an instant-access, risk-free Futures Junctures Service subscription.

Want to see what big moves are in store for commodities? See them now -- RISK-FREE for 30 days

Bonus: Get instant access to "Jeffrey Kennedy: Unedited," a 3-part, 3-plus hour video series covering analysis, trading, and commodity forecasts.

Get the best short-term commodity opportunities from an Elliott wave expert -- 5 days a week.

Futures Junctures editor Jeffrey Kennedy is your personal opportunity scout as he searches the world's leading commodity markets and serves up his best picks 5 days a week.

You get in-depth commodity analysis, daily video forecasts for up to 18 different commodities, plus Elliott wave trading lessons to help put your knowledge into action.

"A concise, daily, audio-visual information barrage. Absolutely the BEST value anywhere." - Tom P.

Start your 30-day RISK-FREE subscription today and find out where commodities are heading next >>

Tags: contracting triangle, corn futures, Elliott wave, Jeffrey Kennedy, live cattle futures, Orange Juice, Relative Strength Index (RSI), technical indicators

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Commodity Trader's Classroom

While commodity markets are known as some of the toughest trading environments around, these actionable lessons from skilled veteran Jeffrey Kennedy can help you trade commodities, or any market for that matter, with more confidence. Download your free eBook now.

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