See What Predicted Commodities’ Recent Drop
Here’s a review of the developing Elliott wave price pattern of a well-known commodity ETF
by Bob Stokes
Updated: June 18, 2021
As of this writing on June 17, the Bloomberg Commodity Index is down over 5% in four days, with the chart showing a downside price gap at the open on June 17 -- a sign of the decline's force.
A major financial website offered reasons for the drop in commodity prices in this headline (CNBC, June 17):
Commodities from copper to corn tumble on China crackdown, rising dollar
However, Elliott wave analysis strongly suggested commodity prices were approaching a southward turn while commodity prices were still rallying -- and before any news from China, or about the dollar.
Indeed, our June Elliott Wave Financial Forecast, which published May 28, discussed an exchange-traded fund which focuses on commodities. Here's the chart and commentary:
The chart shows the progressing structure in the iShares S&P GSCI Commodity-Indexed Trust, an exchange-traded fund that invests in a diversified group of commodities... The rally from $7.50, the low on April 21, 2020 is tracing out an impulse pattern, a five-wave advancing form. The fund should rally above $15.79, the high on May 12, to complete Minor wave ... Thereafter, the largest decline since the April 2020 low will develop...
Well, the ETF did rally above $15.79 as it climbed to a new high, as our Elliott wave analysis suggested it would.
Afterwards, also as forecast, prices then turned and headed southward.
Remember, the main price trend of a financial market unfolds in five waves. These are the waves of the market's collective psychology, and upon completion of the fifth wave, an investor can expect the direction of prices to reverse. In this case, of course, it was "a little more up before a lot more down."
The question now is: How far are commodity prices expected to decline before reaching a bottom?
Check out our flagship investor package for insights by following the link below.
Elliott Wave Junctures: The Right Place at the Right Time
Sometimes, sheer luck is why we find ourselves in "the right place at the right time."
Yet in the world of investing, you can go broke before you get lucky -- if you don't have a proven method for participating in financial markets.
We invite you to take a close look at the Elliott wave method.
This excerpt from Frost & Prechter's book, Elliott Wave Principle, provides insight as to why:
When... the apparent jumble gels into a clear picture, the probability that a turning point is at hand can suddenly and excitingly rise to nearly 100%. It is a thrilling experience to pinpoint a turn, and the Wave Principle is the only approach that can occasionally provide the opportunity to do so.
So, yes, applying the Elliott wave method can help you be at "the right place at the right time."
If you prefer, given most of us have busy lives, our Elliott wave experts can do the work for you.
Follow the link below to learn how to put our Elliott wave team on your side.
In a word, everything. From political conspiracies to Covid-related ones to the theories so bizarre that they seem too silly to be relevant, we live in the golden age of conspiracy theories. And while it’s easy to blame social media for their spread, we think the roots go deeper. Watch our new Mood Riff episode where the host Greg Eident explains some fascinating socionomic findings on the subject.
Sentiment indicators provide valuable information, yet they are best used in conjunction with Elliott wave analysis. Here's one time-tested indicator that has recently displayed a "big surge."
When you track historical patterns of foreign investments in U.S. equities, an important picture emerges. Watch as our Market Trek host Brian Whitmer walks you through a chart of the collective foreign buying interest going back to the 1990s and through today. (Brian's global destination is South Korea.)