This Beaten-Down Commodity Is About to Soar

Most folks have stopped caring about commodity investments. They're making a mistake, though. That's because the recent declines have led to some rare opportunities... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] This Beaten-Down Commodity Is About to Soar By Brett Eversole --------------------------------------------------------------- Folks have gotten used to watching commodities soar over the past few years... Lumber skyrocketed hundreds of percent... Oil jumped above $100 a barrel... And even cotton climbed to a decade-plus high. Today, we're seeing the flip side, though. Prices are coming down. And inflation is falling with them. So most folks have stopped caring as much about commodity investments. They're making a mistake, though. That's because the rapid declines have led to some rare opportunities. Coffee is one of them. Prices crashed recently. Traders absolutely hate the commodity... And according to history, that means a major rally is on the way. Let me explain... --------------------------------------------------------------- Recommended Links: [March 2: 'Get Ready for a U.S. Dollar Collapse!']( That's the newest warning from a 20-year market veteran who nailed the 2008 Lehman Brothers collapse and 2021 Nasdaq crash. He says a once-in-a-lifetime financial event is about to impact nearly every asset you own. Your cash, stocks, bonds... even your real estate is now in jeopardy. And the decisions you make on March 2 could impact your wealth for the rest of your life. [Click here for the full details](. --------------------------------------------------------------- ['The EXACT Day Stocks Will Finally Bottom']( Goldman Sachs doesn't know... Bank of America doesn't know... Morningstar doesn't know... but Marc Chaikin believes he does. He called the bottom in 2020, just 24 hours before the fastest bull market in history. Now, Marc has spotted the NEXT market bottom... and he's sounding the alarm. Plus, he's sharing the names of what he says will be the best – and worst – performing stocks of 2023. [Click here for the full details](. --------------------------------------------------------------- I doubt you noticed... But the price of coffee went into freefall over the past year. The commodity peaked almost exactly a year ago. Then, it fell more than 40% from that 2022 high through the recent low. Of course, when traders see that kind of fall, they all tend to flee in unison. That can last for a while. But eventually, sentiment hits unsustainable levels... And that's when a reversal becomes likely. This is what's starting to happen in the coffee market today. We can see it in the Commitment of Traders ("COT") report for coffee. The COT is a weekly report that shows us what futures traders are doing with their money. And today, after coffee's sustained fall, they're bearish. Take a look... The COT shows a major reversal over the past year. Speculators were darn bullish at the start of 2022, right as coffee prices peaked. But then, prices tanked – along with sentiment. You can see that traders are the most bearish they've been in years. Unfortunately for them, these folks tend to get it wrong when they're either extremely bullish or bearish. And similar bearish setups have been starting points for major rallies in coffee... For instance, coffee was ending a multiyear fall in late 2013. But just as the COT neared a multiyear bearish level, prices reversed... And coffee nearly doubled in less than six months. It was a similar story in late 2015. The commodity had fallen for roughly a year. But eventually, sentiment became too sour. And that spurred a 50%-plus rally over the next year. Finally, we saw the lowest sentiment reading on record in 2018. It took a while for that to affect prices – coffee went sideways for nearly two years. But then, the commodity took off... nearly tripling in a year and a half. Today, we're seeing a similar setup. Futures traders are betting against coffee to a rare level. And in the past, that has always happened near a bottom in prices. The turnaround may be starting already... Prices have soared roughly 35% from their low last month. And history shows the rally in this beaten-down commodity will likely continue. Good investing, Brett Eversole Further Reading "Folks who are bailing on natural gas may be getting ahead of themselves," Sean Michael Cummings explains. This commodity has crashed since August. But according to one signal, the plunge is likely overdone – and prices could be about to reverse... [Read more here](. "We just finished a stellar January," Brett writes. Investors are still fearful today. But last month's rally was the best kickoff to the year since 2019. And history shows that's a good sign for the months ahead... [Learn more here](. Market Notes HIGHS AND LOWS NEW HIGHS OF NOTE LAST WEEK HSBC (HSBC)... British bank Progressive (PGR)... property and casualty insurance Lamb Weston (LW)... frozen potatoes Fresh Del Monte Produce (FDP)... produce Texas Roadhouse (TXRH)... restaurants Wingstop (WING)... theme restaurant Madison Square Garden Sports (MSGS)... professional sports teams Cars.com (CARS)... online car sales La-Z-Boy (LZB)... furniture Terex (TEX)... manufacturing Frontline (FRO)... oil tankers NEW LOWS OF NOTE LAST WEEK Johnson & Johnson (JNJ)... health titan Akamai Technologies (AKAM)... cloud services Bill.com (BILL)... cloud-based software Electronic Arts (EA)... video games Sirius XM (SIRI)... satellite radio VF Corporation (VFC)... apparel manufacturer Sasol (SSL)... chemicals --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. 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