General Comments
Tuesday I will release the 2010 Mega Commodity Forecast Update and Coffee Report. I have wanted for some time to find a no-obligation way to showcase my premium service Mound Trade Signals, and I thought what better time than with the release of the 2010 Trade of the Year, the Commodity Forecast Update Report and my Coffee Report 6 months in the making! In the 2010 Commodity Update my key focus is on critical market changes that have taken place since January 5th. The markets are anything but stable and I expect March and April to be the most volatile two months for commodities since the collapse in 2008. What I believe the markets are experiencing is something that I refer to as the Rubber Band Effect. I like to view markets as going through cycles of tension. This tension occurs when the bull or bear takes control and ferociously moves price to one extreme. Flashback to 2008 with crude oil approaching $150 a barrel and a global grain/rice crisis - prices were seriously stretched at that time. This extreme pulled that Rubber Band price threshold about as tight as anyone has ever experienced. Then instead of snapping (market rubber bands rarely snap;) the markets recoiled, often plunging price at a more rapid pace than when prices were being stretched. So what happens after a rubber band stretches and then recoils? It reforms its shape. Within the scope of this reformation is an inner band, a price stretch that retests the outer price points previously reached on both extremes. Typically these tests form lower highs and higher lows. Ultimately this causes a massive pennant price chart formation on a long term basis, and price consolidations like this can often mean trouble for trend traders. Trends would, in theory, have a shorter life span than the most recent price move and limit breakout trades to smaller moves. However, being ahead of this type of action can offer significant opportunity should the forecast be correct. In the 2010 Forecast I will explore this new market environment and discuss ways to trade it and forecast the price action that lies ahead in markets like Crude Oil, Natural Gas, S&P500, the U.S. Dollar, the Vietnamese Dong, Euro Currency, Soybeans, Corn, Rice, Cattle, Copper, Gold, Silver, Coffee, Cotton, Sugar, OJ, and much more!
