You have to be impressed with what cotton accomplished in today’s nightmarish environment. Yes, it trades a lot based upon what’s happening in the grains, but more importantly, it didn’t go limit down as many had thought it would and it did hold and recover pretty well given what transpired. Now, yes, there is still the matter that large long positions could be jeopardized and removed sending the market into a tailspin, but there really isn’t going to be much cotton planted, so in the long run the long side eventually, (even with poor exports) will work. That thought and what we’ve seen a few times now does give rise to a desire to own protective puts though.
Will the trade have an ample supply of bullets to sell into strength? If they have the equities they will. But margin money is becoming a topic.
Anyway today’s lower opening was held somewhat in check from the Fed rate cut, but the economy is far from being out of the woods. Therefore, one must keep abreast of what is going on in outside markets more.
I’m not bullish on March, but am on July and more distant months. Also think buying any month against March makes sense as well. The Goldman roll, and as delivery approaches has me interested in that play, and I’m not alone.
I suspect March will try the upside and end up in a range, but any move below today’s low will chase longs out. I favor using dips to establish long positions.
Si quiere más información, por favor contáctenos,
Maria Aranda
El equipo de Brokers de Futuros USA
Email: [email protected]
TEL: 312-261-7395
Fuente: MF Global
©2007 Jurgens Bauer & Associates all rights reserved.
Jurgens Bauer
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La operación de futuros y opciones involucra riesgos de pérdida sustanciales, por lo que no es conveniente para todos los inversionistas. La información y opiniones contenidas en esta publicación, no constituyen, ni deben ser interpretadas para constituir una oferta de venta o la solicitud de compra de algún producto. La información objetiva incluida en este reporte ha sido obtenida de fuentes consideradas como confiables, aunque no esta garantizada en cuanto a su exactitud, ni tampoco en lo que respecta a su completo significado. No se asume responsabilidad con relación a ninguna declaración, así como en lo concerniente a cualquier opinión expresada aquí incluida. La confiabilidad relativa a la información en este reporte es solamente bajo riesgo del lector. Todos los comentarios están basados en opiniones.
