Blue Line Breakfast Report - Sugar Cocoa Coffee OJ - February 7
Cocoa - YTD up 14.72%
Speculators continue to pile into the market driving it up to new contract highs while the level of open interest continues to grow. Funds are piling into the market leaving a small gap in the charts. With the hot dry weather in the Ivory Coast we can expect smaller production numbers.
From a technical perspective the trend traders continue to maintain long positions still from January 10th at 2588 and with support at 2721 and sell triggers down at 2745. A move down through 2745 puts them on the sidelines. I would expect traders that are long to add to their positions and trail stops.
Sugar - YTD up 10.66%
This market looks like the next one to setup for a breakout to the upside. We are monitoring the Indian production issues at hand and expecting the deficit to continue to grow.
The trend traders are still long with entries back on January 6th at 13.73 and with the market settling at 14.74 the first level of support comes in at 14.43. The sell triggers are down at 14.02 and is a place to get out not a place to reverse.
Good luck and good trading,
Chief Market Strategist
Follow us on Twitter:@BlueLineFutures
Follow us on Facebook: Blue Line Futures Facebook page
Subscribe to our YouTube channel: Blue Line Futures YouTube channel
If you have any questions about markets, trading, or opening an account please let us know!
You can email us at info@BlueLineFutures.com or call 312-278-0500
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.