We’re talking about the current race to determine which market -- out of all the major commodity candidates out there -- is the greatest contender for near-term opportunity. And the winner is: Cotton
So. Now that you know the WHO, the next obvious issue is WHAT animal the next big move in cotton will represent: Bull or Bear? Well, if you ask the mainstream financial experts, cotton’s price leanings are directly linked to the state of the overall stock market. Here, one Thursday, October 9 news source explains:
“Cotton fell to a new contract low as forecasts for global economic weakness continued…Demand is the big issue for cotton at this point – in recessionary times [it’s] very vulnerable to reductions in usage by consumers. Cotton prices will come up when equities do.” (Futuresource.com)
To borrow from Presidential hopeful Barack Obama’s recent verbiage: “The straight-talk wagon just lost” all FOUR wheels on that one. I.e. the facts don’t check out, as this brief look at the last three major recessions in U.S. history -- versus -- the performance of cotton prices during those periods makes plain:
- 1973-1975: DJIA down, Cotton prices more than DOUBLE
- 1980-1982: DJIA down to flat, Cotton remains unchanged
- 2001-2003: DJIA down, Cotton soars more than 20%
Conversely, during the economic boom and raging stock market bull of 1996 to 2000, cotton prices plunged more than 50% to a 13-year low.
And, most recently, the Dow Jones Industrial Average hit its all-time record high on October 11, 2007. Yet -- Cotton prices did not reach their respective peak until FIVE months later, in early March 2008.
(Cotton Wilts To Contract Low: The October 8 Daily Futures Junctures presents in-depth analysis and labeled price charts of Cotton that show exactly which side of the fence to stand on. Act Now)
As for the clear and objective facts -- The October 8 Daily Futures Junctures includes an original close-up of COTTON that shows a classic “IMPULSE” pattern underway since September.
Here, Elliott Wave Principle – Key To Market Behavior offers a complete definition:
“Impulse waves subdivide into FIVE waves and always move in the same direction as the trend of one larger degree. Elliott noted three consistent aspects of the five-wave form. They are: Wave 2 never moves beyond the start of wave 1; wave 3 is never the shortest wave; wave 4 never enters the price territory of wave 1.”
And, according to the October 8 Daily Futures Junctures’ analysis of COTTON – this market is on verge of making a “pivotal” move.
So, what are you waiting for? Make the most informed decision there is. Subscribe risk-free today to the complete Futures Junctures Service.