Related Topics
Commodities
     

Sugar: When Plan A and Plan B Agree

by Vadim Pokhlebkin
Updated: July 16, 2020

Elliott wave analysis allows you to shrink the infinite number of future possibilities down to just 2-3 probabilities.

What's more, you can rank those 2-3 probabilities from most likely (the preferred wave count) to least likely, a so-called alternate wave count.

Think of it as Plan A and Plan B for where your market goes next.

Sometimes, Plan A and Plan B disagree. Other times, while they may label the waves differently, both Plan A and Plan B ultimately suggest the same price outcome.

Such moments, of course, only add confidence to your analysis.

Watch our Commodity Junctures editor Jeffrey Kennedy explain more using the current price action in sugar.

Free, watch now

Skip "supply and demand" -- watch the waves instead

Ask most commodity investors what drives the trends, and they'll tell you -- supply and demand.

It's true: Supply and demand factors do matter. But not as much as most people think.

Often, what matters more is how investors interpret the changes in supply and demand. A bullishly minded investor will disregard sluggish demand and buy. A bearish commodity investor will see shrinking supply and say, "It's temporary."

In other words, commodity trends are driven by investor psychology... which unfolds in Elliott wave patterns...

...which makes commodity prices predictable.

Let us show you what this means in practice. For the next 30 days, 100% risk-free, test-drive our Commodity Junctures -- and see for yourself.

EXCLUSIVE

Corporate Debt: A Trend to Watch in 2021

LQD is a well-known investment-grade corporate bond ETF. Watch our Interest Rates Pro Service editor show you a clear Elliott wave pattern starting to emerge in this market -- and explain what this likely means for corporate debt next.