Cotton prices continue to rise in a steady but weighted manner. Volatility seems at a low level, even though justified by the tight daily ranges provided, and reminiscent of a «Tug of War.» The pace of the advance, (4 cents in two and a half weeks) has been lackluster but methodical. Obviously, this market wants to advance and has attracted many stalwarts, many of them newer participants in cotton and most of those with deep pockets and holding profitable positions, so as to be hard to shake.
Yet, while the trend is your friend and cotton prices did hold up amidst lower grain prices today, I remain suspicious of the front end of the market’s ability to continue along the current path without at least one decent set back. Yet that type of action doesn’t seem likely until the New Year in my estimation.
Owning March options (19% volatility), be they long calls, or long puts, makes sense if you neutralized them with futures. That way, if a breakout type of move takes place, you should be in a position to benefit. It has always been with all battles in «tug of war,» that eventually one side or the other gives up and the resulting effect is for a large move one way or the other in favor of the stronger team. For me the bull team seems strongest.
Support: 6750-6730, 6680-6650,
Resistance: 6780-6810, 6835-6870
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.
