This is a sample entry from Tom Dosdall’s newsletter, Dosdall Daily Edge, published on Monday, August 04, 2014.
There is a lot of cotton on the global market right now, and as you can see on the daily chart below, the market has sold off significantly since mid-June when it was trading in the 7750 price range.
That said, there are three primary reasons why I like taking a shot at buying cotton today. First, the daily chart looks to be forming a fish hook which might be a sign of a temporary bottom. Second, the TAS indicators appear bullish on both the daily and hourly charts. Third, I think some of these shorts might start to exit some of their positions if sentiment starts to turn even mildly bullish.
I view the “buy zone” as just above this current level of TAS Boxes on the 60 minute chart (6435). If filled, consider risking the trade to 6390.
For those unfamiliar, a 1 point move in cotton = $5.
Risk Disclosure
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
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