Bonds, Currencies, Commodities and Index Futures Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Jimfutu28	2/15/2011 4:33:51 AM
	of 12410

The Softs Review For the week of February 14th, 2011 As usual, it's time for us to be back to review the soft review with Pitguru Jurgens H. Bauer. Now, let's see what's new on soft this week! In cotton, it's still anybody's guess as to where (and when) this market may find a top. On Friday afternoon March options expired, and went out hugging $1.90.00. It will be important to see what Open Interest remains following expiration. Even with a dramatic decline as options offset numerous contracts the level still ought to be high. Then the exchange has to expect a large number of contracts to be offset prior to FND, (a week from Tuesday) as per the new rule that no one without a "true" hedged position can carry more than 300 contracts into notice period. Will there be enough fuel left to keep this uptrend going? I think we'll see fireworks in the spreads. March will likely receive pressure as remaining spec positions must be flattened and likely rolled. Volatility remains very high in cotton options. If you don't think so, check this out, late Friday the CTN $3.00 calls were 400 bid/at 500. And it can get there too! As an elder trader, that quote blows me away...yet it also means to look for great ratio opportunities....I will attempt to explore them, but have nothing in mind as of yet. I must raise the issue of cocoa storage. If storing cocoa in the equator, there must be special concerns to address. You likely cannot leave it exposed to potential infestation and rot. Is there enough storage space? I believe that this may be a vulnerable link in the pipeline. I am bullish on cocoa, as bottom line untrustworthy supply issues. A new high this week early can set the tone. Sugar options expire on Tuesday. Coffee prices set new highs last week and March options expired. Will look for a comfortable level to establish longs as I still feel there is more to go, but coffee prices can back off quite a bit and still remain in an uptrend. KCK could drop to the 242-240 area and still look good from the long side. So, I will try to be patient. Above 260, and the market can rock and roll.... pitguru.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next