I intend to make a post explaining what is going on in commodities soon. Also, specifically I will cover cotton because I am recommending a short here on several grounds. When blow-offs like this end, the declines to follow are dramatic. So, if the high is in on cotton, we are likely set for a move back to 55 dollars on BAL or below. So the risk/reward is good.
Trade Recommendation:
Short BAL at the market open tomorrow with a GTC buy stop at 117.34 immediately after entry. If the trade is successful, it should tell us very quickly I think.
As a general rule, you can risk 2% of account value, meaning if stopped out, the account value decreases by 2%.
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