Sunday, October 12, 2008

the Food Bubble -- I'm starting to smell it...

"Great bodies move slowly." Great events move rapidly.

-- Dickson G. Watts

less than two weeks ago Trend & Value suggested a downside for the Goldman Sachs Agriculture Prices Index (GKX) of below 300. specifically around 280. well, we got below 300, but not quite to 280 as of yet. here's an updated point and figure chart:



and here is the GKX priced in euros:



and in yen:



ag prices may not have hit absolute bottom yet, but my sense is we're getting pretty close.

expect Trend & Value to increasingly concentrate on the analysis of agricultural futures. this is an intelligent speculator's best chance to hit it big the next couple years.

but if I don't start getting some donations coming in I will be forced to put the analysis of individual commodities and specific contract recommendations on a premium access site.