Wade Assurance
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • About
  • Disclaimer
  • Subscribe

Time For The Softs

3/27/2020

Comments

 
I began talking about buying the softs 10 days ago.  In real time, bottoms never look like bottoms.  In real time..... at that moment, it just looks like it is going lower.  Back in August, did cocoa look like a bottom?  No, it looked a lot like cocoa looks today.   Some of the traders I am working with have bought into the softs but most have not.  I am still getting a lot of interest in pressing stock, metals and energy trades but virtually none for the softs.  Cocoa even has a double bottom yet nobody is asking me about buying cocoa.
Picture
Sentiment readings on cocoa have reached extreme oversold levels.  
Picture
Seasonally speaking, March and April are good times to own Cocoa.
Picture
Moore's recommends buying cotton in March and in April.
Picture
Picture
Cotton is another soft that shows tremendous potential.  The cotton industry already has large exports on the books.  It just had a swing low Monday.  Like cocoa, cotton looks to me to be bottoming now.  The chart is not as compelling as the cocoa chart but there are other qualities I like
Picture
Cotton sentiment is at extreme levels here at 19. This is even more extreme than cocoa. Extreme bearish sentiment levels fuel strong rallies.  With so few sellers left, there is not much left in the tank for the bears.
Picture
Seasonally speaking, cotton usually has good returns in March and April.
Picture
Sugar is another soft commodity that looks to have made a double bottom.  This looks sweet!
Picture
​Of the three, I would prefer to see the optix on sugar a bit lower.
Picture

The bottom line here is that we don't need to chase assets that have already popped off their lows.  The edge we have in this method of trading is that we can be bullish when everybody else is bearish.  This is not as sexy to trade as stocks, gold or oil but this group has limited downside and a lot of upside potential.  When it comes to trading, patience is what will pay in the long run.
Comments
comments powered by Disqus

    This Page

    The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market.  All trade recommendations are made in "The Pit".  This is also a blog page where you can ask questions, post your thoughts, or ask for help.  Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.

    Archives

    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    December 2017
    November 2017
    October 2017

    RSS Feed

Steve Wade and Tyler Wade of Wade Assurance are associated persons for AgDairy LLC.

                           Commodity Risk Disclosure Statement

The risk of loss in trading commodity futures contracts can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Wade Assurance is an equal opportunity insurance provider.
CONTACT US
Steve Wade
swade@wadeassurance.com
​
Tyler Wade
​twade@wadeassurance.com
Picture
270-234-6074
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • About
  • Disclaimer
  • Subscribe