One of the biggest mistakes investors make is assuming a trend is over simply because prices have corrected.
Cocoa is a great example.
The blue vertical lines mark our buy signals, while the red vertical lines mark our sell signals. There's no guessing involved. We don't trade headlines, weather forecasts, or opinions. We follow price.
That approach kept us in one of the most explosive commodity rallies in recent memory. Cocoa surged as poor harvests across West Africa, aging trees, adverse weather, and years of underinvestment created a massive supply shortage. Eventually, the trend became extended, our sell signal triggered, and we stepped aside while the market worked through a significant correction.
Today, the picture is beginning to change.
The fundamental backdrop hasn't completely disappeared. Global supplies remain historically tight, and demand continues to outpace production over the longer term. More importantly, price is beginning to stabilize after months of weakness.
We don't need to predict whether cocoa will revisit its highs tomorrow. We simply wait for the market to prove itself. And it is!
That's the beauty of trend following. Patience first. Action second.
After spending months on the sidelines, the soft commodity space is beginning to look interesting again.
Softs are back on the radar.
Want to see how we are trading it?
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At the Supercycle Report, we break down the biggest macro trends, commodity setups, energy trades, precious metals, agribusiness, global equities, and the exact positions we are taking in real time.
Supercycle Report highlights the breakout setups, rotations, and technical signals shaping metals markets — giving traders an edge in gold, silver, and commodities.
