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Don't Let The Noise Confuse You- Cotton Is Where It's At

Published 06/20/2017, 08:04 AM
Updated 07/09/2023, 06:31 AM
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Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

Cotton ETN Daily

Price and Volume Matrix

P LTCO 0 define a new consolidation period. Consolidations often precede transitions to down impulse (red boxes). +BW's near compression reading suggest expansion is coming. If a down impulse drives expansion, the majority, a bullish group after a long and profitable up impulse, will be burned.

Price and Leverage Matrix

Cotton has been focused bull opportunity since May 2016. This opp has recorded 7%, 202%, -49% current, max, and min annualized returns for the bulls, respectively.

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