Hot Coffee With Cocoa

Not sure if you guys caught the blast off on coffee this morning:

Unfortunately that NLBL got gapped over and it was almost impossible to catch this one. If you happen to be in there it should be smooth cruising until 258 – I’d take profits there.

I do however have two more timely charts if you’re trading commodities:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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First up copper which now offers us a nice horizontal support line at around 3.9. Now, I must point out that I usually require three touches to call a proper long term support line. But since this one is completely horizontal and also lines up with the annual lows over in equities I’d venture to assume that 3.9 will be an important support line.

Anyway, we are really not that interested in actually trading copper, rather if things take a turn on the equities side copper could provide us with valuable confirmation by breaching through that 3.9 mark – so keep this chart handy. BTW, short term copper is a bungled mess and I don’t see any edge in trading it.

I do however a nice Net-Lines buy alert on cocoa. This thing could really swing either way and look for a close above to go long with a near target at 3000 or a failure for a drop back toward 2486. This trade should trigger by Wednesday, especially on the long side.

If you wind up being long it may be worthwhile to keep one contract around for a push above that 3k mark. If you get stopped out those two BB lines will serve as nice resistance and for placing stops to protect your shorts.

Cheers,

Mole