You need to understand the dynamics of the marketplace to understand what is going on here. Remember how I told you that the large traders are, for the most part, commodity fund managers? That’s the key to getting the real picture of what you have just seen. These fund managers, for the most part, trade in a particular style and it is that style, their way of doing business, that gives what appears to be very poor performance. I say that because the commodity fund managers are, for the most part, long-term trend followers.

Trend followers of this nature don’t just buy one time and wait for the fireworks. Additionally, the stronger the trend becomes the more positions trend followers will have in a market. Here’s a simple example. Corn begins a long-lasting bull move going from $2.30 per bushel to $3.40, a potential gain of $6,000 on an investment of less than $1,000.