“[He] speaks an infinite deal of nothing, more than any man in all Venice. His reasons are as two grains of wheat hid in two bushels of chaff: you shall seek all day ere you find them; and when you have them, they are not worth the search.”

 

When it comes to foolishness, Shakespeare always gets straight to the point -- which brings to mind the work it usually takes to get the point of most financial media "analysis," because it's so often overwhelmed by useless chaff.

 

Consider these opening paragraphs from a Reuters article early August 6:

 

U.S. wheat futures extended gains on Wednesday, after climbing 3 percent in Chicago trade, as the market rebounded from this week's slide to a two-month low on prospects of good demand.

 

But corn futures continued to slide on weakening crude oil prices and a broad sell-off in the commodities markets.

 

Here, Shakespeare's "grains of wheat" may as well be the "extended gains" in Wheat futures: the chaff is, well, everything else. A single day's gain in Wheat prices are given "market rebound" status, despite a month-long overall decline and multiple earlier "rally days" that rivaled the August 6 session. And what qualifies this claim? "Prospects of good demand."

Why would demand for wheat suddenly be "good"? Did the appetites of millions for bread, cereal, pasta, and beer suddenly reawaken after a long and unnoticed deep sleep? The global demand for wheat is not volatile. It's enormous, yes, but relatively constant, and hardly sensitive or responsive enough to spike wheat prices over a single day.

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Deep sleep or not, there's always something going on in the commodities markets and wheat is no exception. View Elliott Wave International's latest forecasts with the Futures Junctures Service.

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And let's not even get started on why corn futures fell "alongside crude oil and broad sell-off in the commodities markets" when wheat, corn's sister grain, was suddenly and mysteriously immune.

Senior commodities analyst Jeffrey Kennedy has a better way to explain wheat in Wednesday's Daily Futures Junctures: He simply asks: "What’s going on in Wheat from an Elliott wave perspective?"

No matter what happens in the markets, Jeffrey looks at it from an Elliott Wave perspective. No analytical method is perfect, yet there's a lot less chaff -- so the grains of wheat are definitely worth the search and are far more plentiful than two grains for every pair of bushels.

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Jeffrey's got a talent for both applying the Wave Principle and communicating what he sees in the most straight-forward and down-to-earth manner around. The Futures Junctures Service covers all major commodities and has forecasts for all timeframes, and you can learn more about it right here.

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