Posted 5/20/2015 06:45 (#4581101 - in reply to #4580982) Subject: RE: I like your approach but ....
Death comes to us all. Life's but a walking shadow
I like your approach but can't help but wonder if your idea of "structural" doesn't really mean "fundamental". There is nothing whatsoever wrong with this approach you just need to remember that by invoking "fundamentals" you are going outside the chart itself in order to interpret the price movement and direction. I think it's interesting that in your second chart your final price level (on the right) is just about the median line for the 2007 to 2010 interval not counting the price run up in 2008.
Can anyone remember why prices spiked in 2008?
So in the context of your idea of "structural" the run up in prices in between 2011 and 2013 can be simply interpreted as build out of ethanol and reductions in supply due to weather.
Whatever the case, I really like the term "structural". It ranks right up there with "energy" and "buyers step up" as useful concepts
Lines are cool, but market structure rules
