Providio’s Daily Futures Market Comment for 01/10/12 ( Part 4)

[provitrading]

Cotton: 10Jan Yesterday’s bearish Hanging Man still sitting out there and today’s action is the same. Momentum is till waning, though the RSI remains quite Overbot and turned modestly higher today. Trend is definitely rising, but Volume dropped materially today. If the OJ rally is dragging the NYBOT markets higher, look for a correction if the OJ runs out of steam. 96.50 will function as a support level. USDA reports on Thursday AM will be closely watched. Volatility is still on the Low side for taking new long side Option positions.

Seasonal Snapshot: Mixed signals until Jan 10. Then a modest general uptrend until for a few days, then mixed again. Pay attention to near-term fundamentals.

Sugar: 10Jan March Sugar is still making a base at about 22.75-2300. If this level fails to hold, look for a test of the 21.00 support level. Momentum continues to wane. Volatility has dropped from High to Average in just 2 sessions.Watch the Petro market for the Energy components’ dynamic.

Seasonal Snapshot: Modestly higher bias for rest of the week. Next week’s action points to a longer term Trend down and the short term 5-yr has a short negative then gently rising until near month-end.

By Providio Trading Consultants, Inc.
Disclaimer:
There is risk in trading futures and options. One's financial suitability should be considered carefully before placing any trades. Past performance is not indicative of future results.