How It Works
How to Use Price Signals:
As a subscriber you have instant/unlimited access to current Price Signal charts along with our brief analysis each morning. Each Price Signal chart shows the daily Price Signal for that commodity and the closing price of the commodity it is signaling. As the Price Signal moves toward or above the Sell Threshold, it indicates an opportunity to make a sale and vice versa as it moves toward or below the Buy Threshold. Our accompanying analysis each morning indicates if each commodity is currently a STRONG SELL, SELL, HOLD, BUY, or STRONG BUY.
Do They Work?
Building a signal algorithm that incorporates the right variables and weights them correctly is no simple task. We relied on our fundamental experience to get started and spent several months back-testing formulas to get it right. Back-testing and historical performance is one thing but what really matters is live results. Since going live in 2020 our Price Signals have correctly identified every major market high/low and resulting direction change. And most importantly, this included times when the overwhelming fundamental sentiment was wrong such as each of the past two planting intentions reports, the May 7th, 2021 highs for corn and the start of the current rally. And that’s why Price Signals work so well: It’s nearly impossible for the average farmer or livestock feeder to follow every single market development in real time as it happens. And even when we try to, our fundamental observations are always lagging – what we think is important now the market has already priced in. Below are a few examples of Price Signals performing extremely well in real time.