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Frank,
You said:
I am not a bar chartist like you, but to add to your March Sugar's
observation, I have the
following:
1) Weekly trend is down, but the daily trend is up and rising,
2) The momentum indicator(ADX) is at 13. This could be a good signal of
a possible
breakout,
3) Open Interest, and Volume are increasing, meaning fuel, and liquidity
are added to this
market,
4) I have a support at 11.70, and resistance at 11.90. This Friday,
Sugar closed right below the resistance level.
You have given great rerasons for being short this market:
1. Until weekly trend changes, it's still south
2. ADX indicates breakout . . . to downside maybe??
3. With Open Interest increasing, I believe that's bearish. Here's why. The
commercials are the boss of these commodities. Commercials are basically
hedgers. Therefore, increased OI indicates more selling than buying by the
'bog boys'
4. The 11.90 resistance has not been broken yet!
I would be very cautious of any buys here based on # 1 & 3. The sidelines
is prudent here. BTW What's the public think; they're often wrong!!
Dave
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