December delivery cotton futures made a daily-scale top extension two days ago on Monday 5th:
This is the latest commodity market to provide us with a 'sell' signal and should be added to the list of short-sale candidates. We expect that list to grow further but it should be said that selling all of them might be too great a concentration of risk.
The July contract might make the better prospect for a sale. It has been trading at a 10cent premium, so obviously there is room for that to shrink and it has not shown much inclination to rally as December has risen in the last few weeks.
Apologies for the late warning of this signal – we saw it before the opening today but technical problems prevented us sending this edition until now – you might want to try and sell a small rally instead of entering 'at market', as July has already fallen two and a half cents.
RE
