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Soybeans: The Next Few Trading Days Are Important

By Nico Isaac
Thu, 03 Dec 2009 15:15:00 ET
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Call me crazy, but I'd much rather ride out a market trend right from the beginning than when it's over or nearly so. Question is, how does one nab a ticket for the first "trip," and not the other?
The short answer: Be careful relying on the market's "fundamentals."
Take the soybean market, for instance. Back in early October, soybean prices were sagging to a six-month low. And, according to the mainstream experts, the bearish backdrop wasn't going away any time soon. On this, the following October 9 news item sets the pace:
"Record Harvest Pressures Soybean Prices... The US Department of Agriculture raised its output forecast to a new record. For the next few weeks, the prospective size of the US harvest will be one of the dominating price factors." (AP)
Problem is: In the weeks that followed, soybean prices embarked on a powerful rally to their loftiest level in six months.
(A Near-term Move In Soybeans: The December 2 Daily Futures Junctures presents several price charts, in-depth commentary, and live video analysis of where soybean prices could be in the coming days. Get the full scoop today)
As for boarding the soybean rally from the very start -- here, EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy stands apart. In the October 6 Daily Futures Junctures, Jeffery observed that soybeans were at an "interesting juncture" where prices could go either way. To tip the scale in favor of the bulls, however, clear and decisive price action would have to occur, and soon. There, Jeffrey presented the following close-up of the grain market to illustrate the alternate bullish labeling:
Six days later, the October 12 Daily Futures Junctures observed this breaking developement in soybeans:
"The price evidence we needed to confirm the bullish labeling now exists. With supporting price action in place, odds now favor that recent strength is a new wave up that will likely push prices" much higher.
So -- is the bull train in soybeans set to continue full steam ahead? Well, in the December 2 Daily Futures Junctures, Jeffrey reveals exactly why "the next few trading days are important." Get the story today, risk-free.

Tags: futures trading, Daily Futures Junctures, soybean futures
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