This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Breakfast Report: Jan. 14, 2020

By:

Chief Market Strategist at Blue Line Futures

Sugar

Sugar continues to surprise to the upside with global production issues coming front and center. If we see an uptick in energy futures this could be the spark needed to take out some of the key levels from the past. Traders should be long from the high 13.70’s low 13.80’s and moving stops up to break even at this point.

If you haven’t ordered a complimentary 2020 Futures Calendar & Reference Guide, we will have some of these available to send out. This is your go-to resource for Government & Industry Report Dates, Contract Specifications, Futures and Options Expiration Dates. *Available to U.S. residents only.

Orange Juice

The juice continues to sell off triggering shorts with the turtles but I am skeptical of how much more it can run this course. The fact that ADX is showing a strength could means this downward trend is setting up for a major fall out. Stochastics are moving into oversold territory confirming the bear market. OJ feels like it is tracking coffee.

Cocoa

The inside trading day had me slightly concerned that we would not get the breakout to the upside needed to continue this reverse head and shoulders pattern. Buy signals were given yesterday and confirmed today with the stronger open and first support is at 2535 with sell triggers down at 2429.

Coffee

This is a textbook head and shoulders pattern with the one pause on the charts two sessions back at the 50% retracement. I would expect this market to move down to the major moving averages in the next few sessions.

Cotton

The market is finally getting a pause but not delivering any sell signal on the charts. I would watch for another powerful move to the upside if we break through 72. Stochastics remain in overbought territory indicating the strong bull market.

Disclosure: Blue Line Futures

Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Blue Line Futures and is being posted with permission from Blue Line Futures. The views expressed in this material are solely those of the author and/or Blue Line Futures and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Futures Trading

Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.

trading top