Best Value???
YOU MUST ALWAYS BE AWARE THAT THERE IS SIGNIFICANT RISK INVOLVED IN TRADING FUTURES AND/OR OPTIONS ON FUTURES AND ARE NOT SUITABLE FOR ALL INVESTORS.Buying value is always a tricky venture because in buy value one is normally going to be early exposing themselves to a period of losses and possible margin issues. That is why when one buys value one needs to be properly capitalized.
As I look at the board the commodity that catches my eye is cotton. Upon examing the Dec Cotton monthly chart we see that there appears to be good support at around the 42.00 level, going back to August of 2004. The next level of support comes ina round 39.00, which was established in December of 2001. But here is the kicker the ulimate low was 29.90 established in October of 2001. So with these numbers you can see the various levels that one need sto be mindful of if one is to buy value. The ulitimate up side was established in 1995 at 117.00. More realistic upside might be in the 85.00 level. In buying value KNOW YOUR RISK, figured from where you buy cotton to where the various levels of support have been established. Can you live with that amount of risk and maintain the position? That is the key question in buying value. More as we go along.
posted by Lee Gaus @ 7:25 AM
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