The Elliott Wave Principle is about probabilities, not certainties. No form of analysis is accurate 100% of the time for the mere fact that human beings, who are themselves imperfect, are its interpreters.
That said, sometimes, a financial market will come along with wave patterns so clear and consistent that anticipating the future course of prices becomes a matter of when, not if.
For EWI's
Futures Junctures Service editor Jeffrey Kennedy, that market has been
Corn. Over the last year, the grain king has often displayed picture-perfect wave formations and Fibonacci relationships between waves. Thus, the ability to stay one step ahead of the market's biggest turns has been in large part a matter of brainpower and patience alone.
The following archive of Monthly Futures Junctures (MFJ) analysis of Corn, alongside a visual close-up of the grain's prices since July 2008, shows that Jeffrey Kennedy has had both:
January 2008 MFJ: Jeffrey laid out the long-term picture in Corn and wrote:
"The advance will continue to ultimately beyond the July 1996 peak onto a much higher level, closer to 725-750. [Then] we expect the move to be completely retraced once complete."
Five months of rallying later, corn prices did in fact surpass their '96 peak to above the 750 level.
After the first part of Corn's Elliott script had been fulfilled, the second half was yet to come. Here, Jeffery ignored the slew of bullish fundamentals to the contrary -- Midwestern flooding, crop damage, soaring crude oil prices, and the lowest-rated corn crop since 1966 -- and stuck to his bearish guns with these insights:
- July 2008 MFJ: "The five wave move up is complete"
- August 2008 MFJ: "Corn has put in a multi-year top. The historic extreme I was looking for is in place..."
From its June 26 all-time peak, Corn endured a five-month selling spree to a three-year low.
Finally, after crawling sideways for many months, the March 2009 MFJ foresaw the bullish winds of change and wrote:
"The chart pattern argues for a test of the January 2009 extreme. The stage is now set for a rally."
Today, corn prices are orbiting their highest level in seven months.
(
Editor's Note: In the June 4
Daily Futures Junctures (online now)
, Jeffrey visits the near-term side of corn to reveal where this grain could be in the days ahead. Get the complete
Futures Junctures Service today, absolutely risk-free.
Click HERE to begin.)