Why You Can "Count" On A Fresh Opportunity In Soybeans

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Why You Can "Count" On A Fresh Opportunity In Soybeans
EWI's Daily Futures Junctures maps out the grain's next ideal scenario using objective Elliott wave analysis

By Nico Isaac
Thu, 12 Apr 2012 16:45:00 ET

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According to mainstream analysis of financial markets, root causes called "fundamentals" give rise (or fall) to turns in the market's price trend.

But in reality, all too often changes in price happen first. Then, the mainstream experts swoop in and try to quickly adjust "fundamentals" to fit price action -- after the fact. This often creates a flurry of mixed information where the theme of one news story is quickly contradicted by the next.

Take, for instance the pair of April 11 headlines regarding soybean futures:

US Department of Agriculture report is bullish: "Soybean Prices Rise As Supply Tightens. Soybean prices rose to a seven month high after the USDA said the world domestic supplies of soybeans will be tighter this year due to short crops in Brazil and..." (Associated Press)

-- Versus --

US Department of Agriculture report is bearish: "Supply Outlook Rattles Soybeans. Soybean prices declined after the US Government reported bigger national inventories than forecast by analysts." (Bloomberg)

So long as you look outside financial markets for clues as to future price action, you will be at the mercy of subjective gainsaying just like this.

Elliott wave analysis stands apart by examining the main trend-changing force internal to all finanical markets; namely, social mood -- which also unfolds in objective wave patterns on a market's price chart. Each pattern adheres to specific rules and guidelines governing wave length, depth, and often duration.

So, unlike fundamental analysis which waits on price action first, then follows -- Elliott analysis tries to anticipate major moves before they unfold.

And, right now, EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy puts his Elliott wave expertise to work on identifying the near-term trend underway in soybeans. The big question being: is the market's show-stopping 30%-plus rally since the start of the year wearing thin -- or just beginning?

Well, in the April 11 Daily Futures Junctures, Jeffrey reveals that the answer to this question is a simple matter of counting the waves from soybeans' early April high. To wit:

3 waves signal countertrend price action. It is choppy, complex, and often retraced in far less time than it took to develop.
5 waves signal impulsive price action and an extension of the larger trend. With the wind at its back, 5-wave moves tend to unfold in a smooth and decisive manner.

So, what are you waiting for? Get instant access to the complete Daily Futures Junctures web video-and-written analysis of soybeans. Click here and follow the steps to a risk-free subscription today.

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Tags: Daily Futures Junctures, Elliott wave, fundamental analysis, futures trading, Jeffrey Kennedy, soybean futures

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