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Saturday, October 12, 2013

Commodities

I have always believed there's a time to be in stocks and a time to be in commodities,I guess that could apply to all the different equities when timing is important. The commodities sector looks to be coming alive, as last week  sugar and wheat broke out and above the Ichimoku cloud resistance.Nat Gas has been in an uptrend since April 2012 ,the daily chart has an 5 wave completed count with a 5 wave pullback,resembling an (a) wave. When looking at the weekly chart their seems to be a clear Elliott wave count of an wave 3 with a wave 4 pull back of a-b-c.  This is fun,isn't it!. The daily Time frame may look complete but when doing the math for the number of days,it still may not have  completed. On the weekly time count the wave 1 timing and the wave 3 timing are very much in line (harmonic to each other). I took an position in the middle of the week in ung  as a proxy trade for nat gas as a head and shoulders pattern is hard to pass up.  Once it breaks above the last weekly wave 5 high we can label the last low a primary wave 2 on it's way to completing an primary wave 3.                                                                                                                                                                                                                                                                                                          
         
www.stockcharts.com              

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