» Click Here For Archived Market Data

Monday | Wednesday | Tuesday | Monday | Friday

For: Tuesday 03-16-2010

Cotton Run

After a brief setback we see cotton continuing to slide higher. This could be a simple bull flag pattern on a weekly chart and we will look to buy call spreads to see if the market can continue the ascent.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: On close above 8250 versus the May futures in the next week, buy 84-87 call spread for 100 points on a limit. Risk three quarters of the premium paid on the trade initially. (>$375 not including commissions and fees), Look to take profits if the market trades to the 8500 level or the position doubles in value.