Sugar Futures 2012-08-19

Last week I entered into a long trade in sugar futures. Prices rose, but then I was stopped out due to an immediate return to entry level prices. I am entering an order to go long sugar again, when markets open over Sunday night on August 19, 2012. You can see my trade last weeks here: 2012-08-16 TRADE Sugar or by using the futures blog posts menu on the RIGHT HAND SIDE of all futures blog posts pages.

Here is a chart of October sugar futures.

Notice prices making lows in the 20.15 area repeatedly after a steady downward slope over a few weeks. Notice that simultaneously, MACD has steadily risen over the past several days, even as prices continued making new lows. It is because of this upward MACD dynamic that I chose to enter a long trade last week, and it is for the same reason I am putting in an order now. I am entering an "at the market" buy order for October sugar. Hopefully this will be executed as soon as markets open Sunday night at a price of around 20.10 to 20.20. As always, I will be using a stop in case my diagnosis is incorrect or wrongly timed.

In other markets, I've been watching how treasuries have been behaving. A few weeks ago I was short 10 year t-notes and I was stopped out prematurely. I did not re-enter this trade as prices eventually went in favor of my original trade. I am casually looking for a re-entry on the short side, as I still feel there is some room to move lower before a floor is determined. Although, that space could get filled quite quickly if some news breaks, or something. I am also taking a similiar view of the US dollar index. However, I am unlikely to trade this view from this context. I may trade the US dollar index from a simple 6omin chart context, as I am always looking at this market for 60min chart trades.

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