- New Science in old markets -

Commodity compression reminder – wheat and cotton

We have been identifying short-sale candidates in the commodity markets for several weeks now and pointed  out in the April 14th edition that sugar and wheat were both compressed and could be sold short if there were a ‘closing break’ of those compressions. Sugar obliged by closing down below the relevant compression but wheat did not – instead it rallied a little. Now it is poised to break again today in all three of the delivery months: July, September and December 2014.

Ideally all three should break at once but we would settle for only one of them IF the break of the lows of the compression is clear near (or at) the close any day soon, including today. The relevant prices are the lows of April 9th and are: 671, 681¼ and 693¾ for July, September and December respectively.


Cotton is also compressed and may now be added to our candidate list for short-sales:

Here the relevant closing level that would warrant a short-sale is the low of the 15th April, 90.51 so a close below that is your signal.

Happy Easter, more tomorrow.