Tuesday, July 19, 2016

Cotton is breaking out to the upside

Take a look at what's happening to cotton. It's a market that nobody has been paying attention to and has been totally left off of everybody's radar. 

Something is developing technically in the cotton market. Cotton is trading within a very small range between 68 cents and a low of 60 cents. Suddenly, cotton is breaking out to the upside. The term structures are starting to move and the contangos are beginning to narrow. Markets that don't go down on bearish news aren't going down anymore.

Any time you have a chance to buy any weakness in the next two or three days, take a look at it. Be a buyer on any one- or two-cent declines.