The Sugar market is quite volatile right now so we are watching the position very carefully.
We don't want it to run against us by to far before we bite the bullet and take a loss.
With all of the safe measure talk out of the way, it remains a safe play to short sugar from current levels.
The technical nature remains weak and the big boys continue to sell the commodity outright while the small speculators can't wait to buy the dips. Both of these behaviors are bearish for the intermediate term trend in sugar.
REMAIN SHORT/NEW SHORT POSITIONS ARE CLEARED
Copper was our best play for the week and we wrote about it's downside potential over the weekend.
So far it has not disappointed and has continued to show high levels of technical weakness.
Being as copper went our way by a decent margin so far, it would be safe for conservative traders to move their stops up to the break even point.
REMAIN SHORT/CONSERVATIVE TRADERS MOVE STOP TO RISK FREE
We hold a sizeable profit in Cotton and have placed our stop accordingly, in order to lock in at least half the profit should it decide to reverse course from here.
However, the odds of such a reversal continue to decrease each day as the bear flag continues to form and calls for another hard break lower.
Downside targets off this bear flag are near 63.25 and the commercial traders as well as the small speculators continue to forecast lower prices.
REMAIN SHORT WITH A 50% PROFIT LOCK
While we have a small profit in the position, the inability to move higher has kept us very cautious and remains a cause for concern.
We are running a fairly tight stop loss on the trade so risk is very limited, but cattle needs to break out of its current trading range very soon in order for us to keep the trade alive.
Should it continue to flounder, we will not hesitate to exit the trade with a small profit.
REMAIN LONG CATTLE PENDING A BREAK OUT OF THE CURRENT TRADING RANGE