Futures Market - Fiber Highlight #1
Elliott Wave pattern and "Linear Time Cycle" projection combine to identify exact day of 4 year low in cotton and signal ensuing rally.
(COMMENT #s 285, 324)
UPDATED 19980407
COMMENT 1998-285
1. Remember the following headline from COMMENT # 215;
"MKT. SPECIAL : COTTON FINISHING STRONG ON MONSTER FUND BUYING"?
2. The day of that headline, 980313, marked the very end of the upsurge in this market.
3. The market has since moved to new lows in waterfall fashion.
4. Basis the May contract, this market appears to be completing 5 Elliott Waves down from the 980313 high.
5. The "3rd Wave" lasted 418 points.
6. PHI (1.618) X 418 = 676 points.
7. If the "5th Wave" is 676 points long, the 5 wave sequence should end at 6760 (the 4th wave high) - 676 = 6084.
8. See the chart on page 332 of "The 1998 $upertrader's Almanac - 1st Half Edition".
9. Turn to pages 375, 377, and 93 in "The $upertrader's Book of Linear Time Cycles".
10. Need I say more?
UPDATED 19980415
COMMENT 1998-324
1. Time to review COMMENT # 285 of 980407.
2. Cotton bottomed on 980407.
3. The WSJ headline the next day stated;
"Cotton Falls to 4 1/2-Year Low on Supply Fears".
4. "Ending stocks are nearly half of consumption . . . [u]ntil we can run these down, it will be very hard for prices to rise", said (an analyst).
5. Cotton opened lower on the 7th, traded high all day, and is higher still today.
6. This rally has occurred on declining volume, however.
7. See the chart on page 332 of "The 1998 $upertrader's Almanac - 1st Half Edition".
8. Turn to pages 375, 377, and 93 in "The $upertrader's Book of Linear Time Cycles".
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