Cotton has had such a dramatic run I was contemplating going against the trend. It closed Friday at $1.6786 down four cents. Here's something to think about from Afraid to Trade:
Did you know that Cotton prices have more than doubled since the September period when the first rumors of QE2 were released?
Cotton is a market most of us never chart, but it’s doing something interesting right now in terms of a Three Push Pattern and nice Bearish Engulfing Candles.
Let’s take a look at the past few months in Cotton, see it double in price, and take a look at the current and past bearish engulfing candle patterns which are rare but fun when they form.
First of all, Cotton shows us how a commodity can trend better than a stock at times, in terms of its non-stop series of higher price highs and lows (the definition of a trend).
Beyond that, I wanted to do a fun update of cotton that shows a present and past Bearish Engulfing Candle pattern. These are among my favorite candle patterns, particularly if they form at some resistance level or are accompanied with negative divergences....MORE