Mid-2014 Cash Soybeans Cycle and PTV Analysis

 Our analysis of the cash soybean market indicated that a geometric cubic structure completed in Nov-2013. Additionally, an important Gann's 45yrs cycle harmonic aligned with Nov-2013 bottom. This was indication of a rally and much higher prices in the cash soybean market.

 We pointed out in our soybean roadmap for 2014 the months of January, May and November as important for trend changes in the soybean market. We initially considered that the high of the year could be made from mid to late May reaching much higher prices.

 

 Cash soybeans topped out in May 22nd, 2014 but not reaching our initial price targets. Prices have drastically dropped since the market topped in May. This proves that we clearly underestimated that top.

 The current post will briefly address our initial train of thought regarding the cash soybean market and why we expected higher prices.

Corn Market Geometry 2014 onwards

 The cash corn market is studied using price-time geometry theory presented by B. Cowan in his published works. Price-Time Vectors[1], introduced by B. Cowan, allow the analyst to unify into a single element the price-time action. The length and orientation of these PTVs define the spacing between points of force in the market. The relative spatial distribution of these points follows simple mathematical ratios and defines geometrical structures.

 Furthermore, financial markets develop within the limits of growth spirals. As more energy is inserted into the markets, each turn of the spiral is larger than the preceding one. This translates into larger price swings.

 Geometry analysis of the cash corn market predicts much more higher prices for the coming years, probably similar to those of the soybean market. The January 2014 bottom in corn may be the beginning of a major bull market.