The Outlook for Commodities: Big Wave Patterns Portend Big Price Moves

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The Outlook for Commodities: Big Wave Patterns Portend Big Price Moves
EWI’s August 2012 print-and-video Monthly Futures Junctures reveals the long-term trend underway in key commodities

By Nico Isaac
Fri, 17 Aug 2012 16:00:00 ET

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Over the past year, the once across-the-board commodities bull market has become a very specific commodities "Boll" market. To wit: The only sector that has actually held onto its uptrend has been grains.

For this very reason, the #1 question among commodities investors is this: Are grains the rising tide that will eventually lift the other boats: softs, foods, livestock and meats? OR -- are grains the "rogue" wave that will come crashing down on the entire commodities complex?

Well, in the brand-new Monthly Futures Junctures, EWI's chief commodity analyst Jeffrey Kennedy sees no key commodity left behind in the coming period of synchronization.

First up, Jeffrey Kennedy gets in front of the camera for a special Monthly Futures Junctures video episode. Here, Jeffrey turns the 5 pages of MFJ's "Featured Market" segment into a 9-minute long commodity-centered docudrama. And, in the end, he shows you exactly why the road of long-term opportunity is paved in these 4 commodities:

Cocoa:

· Before: Last spring, cocoa prices soared to an outer-galactic 3-decade high. The March 2011 Monthly Futures Junctures warned of a powerful return to earth and wrote:

o "The stage is set for the next act: A more than complete retracement of the [rise from 2006] to [below the 2000 level]."

· After: From its 2011 peak, cocoa prices plunged over 40% to a 5-year low in December. Now, Monthly Futures Junctures reveals how 3 different price charts all offer the same message of what's to come.

Sugar:

· Before: The start of 2011 saw prices orbiting a 30-year high with no "fundamental" end in sight. The February 2011 Monthly Futures Junctures saw a very near Elliott wave end, however and wrote:

o "The expected sell off that will push prices below the November 2011 low of 22.89 may very well be only a precursor of things to come.

· After: From its early 2011 peak, sugar soured to a 2-year low in May 2012 before rebounding. Now, Monthly Futures Junctures "examines" several price charts and arrives at one single consensus: A substantial move is ahead.

Soybean meal:

· Before: While the early 2011 Monthly Futures Junctures' market commentary was uber-bearish on softs, it was equally bullish on meal. The March 2011 MFJ wrote:

o "The larger trend is still up [in wave 5]. 5^th waves in commodities tend to be propelled by fear: fear of inflation, fear of drought…"

· After: Now, Monthly Futures Junctures reveals why "a 25%-30% change in meal's value is minor compared to what" the larger wave patterns have in store.

Lean Hogs:

· Before: With hog prices surging to a new contract high earlier this year, the March 2012 Monthly Futures Junctures said it was likely time to kiss this rally goodbye. We wrote:

o "We have a potentially bearish series of 1's and 2's. Confirmation would come with an exceptionally sharp sell off…"

· After: From an early 2012 peak, hog prices have been butchered and now stand at a1-year low. The new Monthly Futures Junctures shows "monthly, weekly, and daily" price charts that all call for a "noteworthy move well into next year."

Believe it or not, that's just the beginning. What follows in print are 5 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.

Not to mention a video-and-print "Traders Classroom" doozy where Jeffrey walks and talks subscribers through the practical ways in which the Wave Principle can improve your trading.

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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.

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Tags: cocoa futures, commodities, Elliott wave, Jeffrey Kennedy, lean hog futures, soybean meal, sugar futures, video

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