The Breakfast Trade: Buy Signals For Coffee And Wheat

Trading volatile commodity markets can be quite challenging, but at Market Inflections we employ a software application which helps to identify when trends are about to begin and end.

This summer our trading software generated notable signals on both Coffee and Wheat futures which leads us to the conclusion that it’s time to put on “the Breakfast Trade.”

The chart of each signal is provided below as well as our analysis and commentary:

Coffee futures (on left) / Wheat futures (on right)

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coffee wheat futures buy signals_trading chart_30 august 2017


Coffee: In September 2016, our market timing software generated a Minor Sell signal on the weekly chart of the Coffee Futures Contract. After a 35% plunge, in June 2017 a buy signal triggered which suggests that Coffee should rally through December 2017.

Wheat: In late June, our market timing software generated a top signal on the weekly chart of the Wheat Futures Contract. Within the next six weeks, Wheat lost 30% of its value until two buy signals triggered earlier this month. These bottom signals are statistically significant through January 2018.

If you’re not trading the Futures markets and would like to gain exposure to Coffee and Wheat, check out the iPath Bloomberg Coffee SubIndex ETN (NYSEARCA:JO), the Teucrium Wheat Fund ETF (NYSEARCA:WEAT) and the PowerShares DB Agriculture ETF (NYSEARCA:DBA).

If you do trade Futures and are interested in receiving trade alerts generated by our market timing software, please check out the ExtremeTrading Futures Alert Service.

Thanks for reading!


Twitter:  @larryfooter   @mktinflections

Author is long December Coffee futures contracts and December Wheat futures contracts. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.