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Acerage report loom largely over cotton markets
29 Jun '07
3 min read
On the other hand the market has been unable to take out the recent high on a couple of occasions and volume has been declining, which may be seen as a sign that upside momentum is fading.
Tomorrow's report should resolve this stalemate and either lead to a deeper correction or to a resumption of the uptrend. This week's erratic trading has shown that it currently doesn't take a lot of volume to push the market around.
Take Wednesday for example, when the market first sold off to 60.65 and then quickly rallied to 62.25 cents, all in very light volume.
This has to do with the fact that the trade is massively futures short and therefore does not have a lot of firepower left on the short side.
It does not take much spec buying to push the market a cent or two higher these days and therein lays a certain danger for the trade, which still seems unaccepting of this ten cents move in the futures market.
Click here to read more:
Tomorrow's report should resolve this stalemate and either lead to a deeper correction or to a resumption of the uptrend. This week's erratic trading has shown that it currently doesn't take a lot of volume to push the market around.
Take Wednesday for example, when the market first sold off to 60.65 and then quickly rallied to 62.25 cents, all in very light volume.
This has to do with the fact that the trade is massively futures short and therefore does not have a lot of firepower left on the short side.
It does not take much spec buying to push the market a cent or two higher these days and therein lays a certain danger for the trade, which still seems unaccepting of this ten cents move in the futures market.
Click here to read more:
Plexus Cotton Limited
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