TAKE A LOOK AT SOME OF THEM BELOW AND YOU DECIDE WHICH HAS THE MOST POTENTIAL.
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The 30 year bond is tracing out a bearish wedge on two time frames and has a small negative divergence to contend with.
We will know very shortly if a short trade will be put on the table with a break of the bearish wedge pattern.
This may coincide with a move out of the safety of bonds back into stocks, but we will trade these as they come our way and confirm accordingly.
Have the Hogs finally bottomed?
We will know for sure once we see the stochastics cross 45.
I am not going to take my chances with buying at the cross of 20 as I have been faked out twice
on the hogs and I don't intend on repeating for a third time.
Sugar finally made the move to the upside we had been looking for 6 months ago, but we did not get aboard this one.
There is still some potential for a short trade on sugar as we have a 50% retracement completed and a sell on the stochastics.
Large short positions by the commercials as well as large long positions by the funds and small traders spells the potential for a fairly decent decline much like cotton and lumber.
Sugar may be a little more difficult to trade however as it has been very volatile with this blow off move. Sugar has already crossed the 80 level on the stochastics twice and looks to move down again, so do not execute your trade on the short side until the daily stochastics cross with conviction which looks to be very soon.
We remain short March cotton with an average price of 71 1/2 so we are sitting a little behind the 8 ball on this one, but it looks like it is about to break to the downside, especially with the negative divergence on the stochastics and its failure to reach the 85 level.
Much like Lumber we have the commercial traders heavily short and the Funds and Small traders heavily long. A very nice set up for lower prices.
Our stop loss is a bit wider than we like, but the potential of this trade seems to be worth the extra risk with a wider stop.
Lumber has made a two day bullish pattern and once we see the slow stochastics cross 20 we will have a trigger to go long.The commercial traders are very heavily long and funds and small traders are extremely short.
This is a classic set-up for a very nice rally.
We still need to wait for the trigger however and once that is accomplished and we enter on the long side we need to enter our protective stop loss order.
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