When it comes to riding the train of opportunity in SOYBEANS, there are two different railways for market players to take:
1.) The “F” line, or fundamental line: Currently stalled on the tracks waiting for a herd of external “cows” to clear. (For example: “Unknowns of acreage and demand,” “Lingering logistical problems in the Midwest due to flooding,” “Uncertainties about the Argentine conflict,” and on.)
And 2.) The “E.W.I.” line, conducted by Elliott Wave International's longtime commodity specialist Jeffrey Kennedy: Moving full steam ahead after arriving EARLY for two major turning points in Soybeans’ recent past:
Case in point: In the March 2008 Monthly Futures Junctures “Featured Market” segment, Jeffrey Kennedy picked soybeans out of the crowd and wrote: “I have labeled the recent peak as the termination point of wave (3), thereby setting the stage for a wave (4) decline… Once complete, I fully expect the recent uptrend to continue to much higher levels.”
(Staying On Soybeans Track. The two leading Futures Junctures Service publications -- Monthly Futures Junctures & Thursday’s June 19 Daily Futures Junctures -- see a wide load of opportunity coming into soy’s station. Learn More today)
The first part of Jeffrey’s soybean outlook outlined a “Wave (4) decline” and thus, the top Three Elliott Wave guidelines of Fourth Wave retracements. They are:
- The most common Fibonacci retracement for fourth waves is a .382 multiple of wave one. Occasionally shallower and deeper fourth-wave retracements do occur.
- Wave four can never end in the price territory of wave one.
- Fourth wave corrections tend to end in the span of the previous fourth wave of one lesser degree.
After a sharp sell-off to four-month lows, soybean prices finally ended at the .382 retracement of wave one and the price territory of the previous fourth wave of one lesser degree.
The second part of Jeffrey’s soybean outlook called for “the recent uptrend to continue to much higher levels.” See: June 16 news item: “Soybean prices near contract highs.” (DJ Newswire)
Looking forward, Jeffrey revisits the Soybean market’s short side in the Thursday June 19 Daily Futures Junctures. In his own words: “Soybeans have been following the path laid out for them for some time. Just as we’ve done all along and will continue to do so, let’s just take things one wave at a time… The stage is set” for a powerful move.
As for the long-term wave pattern underway in beans -- The June 2008 Monthly Futures Junctures shines the “Featured Market” spotlight on the grain once again, showing how HIGH wave 5 will fly.
The best part is, with a risk-free subscription to the Futures Junctures Service, instant access to both DFJ and MFJ publications is just a click away.