Memo from the desk of: Peter
DeSario
Subject:
Regarding This Month’s Futures Junctures Picks
Date/Time: August 17, 12:34 PM
Dear friend,
Trends that unfold over weeks and months will often give you highest-confidence trading opportunities. Why?
The long view shows you important indicators like sentiment. When sentiment reaches very strong or extreme levels of optimism or pessimism, it’s time to look even more closely at the Elliott wave pattern. An explosive and very profitable move may be just ahead.
The August Monthly Futures Junctures letter includes several excellent unique opportunities. These examples show how sentiment has increased our confidence in what the waves are saying.
CORN: Commentators cite bullish fundamentals, yet still seem unwilling to get off the fence. In July we said that the “point of recognition” could come later in the pattern, when large numbers of buyers will fall in behind the dominant trend. This could happen in the next several weeks as the powerful third wave unfolds.
COTTON: Only once since the mid-1970s have prices been this low (briefly in 1985). Sentiment is deeply pessimistic. Industry insiders say cotton is “well under its production costs,” and they see no reason why world cotton demand will increase significantly. We think they’re looking in the wrong places for what prices will do.
SOYBEANS: Commentators across the board are bullish this commodity, yet we expect optimistic sentiment at this juncture in the pattern. Strong accompanying fundamentals are also part of the picture we expect to see: it reflects perfectly the long-term message from the Elliott waves.
COFFEE: The 48.10 level on August 10 was a low seen just one other time in more than 25 years (1992). Sentiment in this market is beyond pessimism. One observer claims that coffee is trading around 12 cents beneath its cost to produce, which explains the anecdotal reports of growers abandoning their farms. When the right moment comes, the opportunity could be immense.
This is just a brief preview of how we look at sentiment. But remember, sentiment only serves as a confidence builder in the most important tool of all, namely the Elliott wave analysis. I recommend that you use the broader perspective you’ll receive from the Monthly Futures Junctures, via the markets, patterns and opportunities that are in the just-published issue.
Thanks for your time. I look forward to the opportunity to serve you as a subscriber.
Peter DeSario
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