Commodity markets move in cycles—expansion, peak, decline, recovery. For smaller stocks, these cycles tend to be more exaggerated.

Cycles Drive Sentiment

Even weak companies can rise during strong cycles, while solid ones may fall during downturns.

Entry Points Matter

Buying too early in a cycle can mean long periods of stagnation. Too late, and the upside may already be gone.

Watching the Turn

Traders often look for early signs of reversal—inventory changes, pricing stabilization, or demand recovery.

Bottom Line

In commodity trading, timing often matters as much as the underlying business.