jackfutu18
Active member
- Messages
- 106
- Likes
- 0
Pitguru today shares the latest information on Softs market in the week of June 28th, 2010 with traders who care:
"The big story among softs continues to be coffee. In my humble opinion, coffee is performing similar to moves previously seen in cotton, sugar and crude, not to mention wheat. The flow of money is responsible and the forces of fear and greed heightened. Although some will attempt to discover some fundamental reason for the move, it hasn't stopped, even though the pace may have slowed as volume has tapered off, and I suspect another push up in store. Looking for 180-182 as a possible upside, although initial resistance seen at 171-173, 175-176.50, see support at 165, 163, 161, below there and mid-150's come back into play. The risk reward seems favorable to bulls. Be aware, when the move ends it'll be a quick trip south as gravity takes over, so owning puts could be paramount with put spreads likely better because of how volatility drops big when coffee prices go down. Typically, synthetics may prove worthwhile. For now though, looking for strength to carry for a revisit to the high area achieved Thursday (in early electronic trading, when many market players were at bay). That was a heck of a move.
Cocoa prices have reached an area where I have been expecting to explore interest in acquiring O-T-M puts. Subscribers should be prepared for a recommendation. Cotton values need to prove capable of breaking either above 80 cents or below 77 00. Sugar on the move up again, perhaps 18 to 19 cents.
As the Fourth of July Holiday Weekend approaches, watch for markets to be choppy. Volumes will get thinner, and that may improve the potential for size to push things around. As time decay kicks in for KCQ options, the choppy conditions and uncertainty may serve to keep things from falling apart so direction will play a more important role.
I like the sugar, as is obvious by last week's rec."
"The big story among softs continues to be coffee. In my humble opinion, coffee is performing similar to moves previously seen in cotton, sugar and crude, not to mention wheat. The flow of money is responsible and the forces of fear and greed heightened. Although some will attempt to discover some fundamental reason for the move, it hasn't stopped, even though the pace may have slowed as volume has tapered off, and I suspect another push up in store. Looking for 180-182 as a possible upside, although initial resistance seen at 171-173, 175-176.50, see support at 165, 163, 161, below there and mid-150's come back into play. The risk reward seems favorable to bulls. Be aware, when the move ends it'll be a quick trip south as gravity takes over, so owning puts could be paramount with put spreads likely better because of how volatility drops big when coffee prices go down. Typically, synthetics may prove worthwhile. For now though, looking for strength to carry for a revisit to the high area achieved Thursday (in early electronic trading, when many market players were at bay). That was a heck of a move.
Cocoa prices have reached an area where I have been expecting to explore interest in acquiring O-T-M puts. Subscribers should be prepared for a recommendation. Cotton values need to prove capable of breaking either above 80 cents or below 77 00. Sugar on the move up again, perhaps 18 to 19 cents.
As the Fourth of July Holiday Weekend approaches, watch for markets to be choppy. Volumes will get thinner, and that may improve the potential for size to push things around. As time decay kicks in for KCQ options, the choppy conditions and uncertainty may serve to keep things from falling apart so direction will play a more important role.
I like the sugar, as is obvious by last week's rec."
Last edited:
