Charts reflect all the up-to-date information so divergences are always interesting. With the weekly and daily pointing at a bottom now, usually the macro events catch up with the price action. Perhaps adverse weather conditions may effect future coffee yields (price up), or perhaps demand will be up, or other reasons may surface moving forward that would act as a catalyst for a big bounce and verify the positive divergence set-up. Keystone bot more yesterday and has an ongoing JO long trade. He is also drinking extra cups of coffee to help the trade. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
A long standing thesis around here is its in the news for a reason and its not for you own good. A majority of the reports Im reading on coffee are negative therefore we are positive about coffee. Columbia has gone as far as to devalue or atleast beigin to and/or acknowledge there strong currency is hurting there farmers at the market therefore that has lead I beleive to this last leg lower. 130.00 flat is solid support but late last week and again early this week I've been buying micro amounts of stock - and in hingsight now I see that going forward the best play of this setup for us is going to be to sell puts on monthly basis get in await the famous price spikes to the upside that is coffee signiture characteristic.
ReplyDeleteHello MCAP, great information. The inflections are always tricky, but JO's action and set-up sure is remindful of when natty gas hit its bottom, chart-wise and sentiment-wise a year ago. Natty is a double in one year.
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