Last Friday I wrote that that action in Cotton looked like a blow off top. So far today cotton is down 13.50 cents a bale lower. It had been close to 19 cents lower earlier. Each penny is worth 500 bucks on a one lot. $7,000 on a one lot. Not a bad short position.
Crude, once again, rallied on mid-east fears from Libya. 3% of the world’s oil comes from Libya. Oil companies are shutting down and getting their workers out of there, from latest wire reports. I can’t blame them. I would not want to be a westerner in that country if the wheels come off and they start “delivering justice”.
I had resting orders to sell at 92 and 93 with buy stops above. My 92 sales were stopped out. However, my 92.50 and 93.00 and 93.50 sales are still in tact.
Again, I am just selling a technical level here. I will cover all shorts if we settle above 92. This unrest in Libya could be the real deal. It could the real deal. If it gets resolved, and crude breaks, the correction could be tasty.
Ditto for Gold at 1400. I think that’s a level you exit longs and initiate a small short position. The high so far has been 1408. Right now its at 1400 even.
I am short with tight buy stops.
I am going to be watching the national media. Any noticeable hysteria on the part of commentators would make me feel more comfortable about being short.
I am a firm believer you have to be heading the opposite way the herd is heading to be profitable in the long run.
That is all.
Good Trading.
Use your stops.
CER
