COTTON

Here is a market I have not covered before in here. This is the December Cotton contract which is potentially setup for a short sale. As you can see the seasonal tendency is for a decline at this time.

We have had several days with higher lows and higher highs, yet we still have not taken out the prior pivot high. The "secret" oscillator at the bottom is indicating a possible failure here of this rally to have a break out.

If we get a break down from this pattern here prior to taking out that prior high, or right afterwards, and a reversal, this will be a good short opportunity. This does seem to be a market that marches to it's own tune and is not caught up in the upward vacuum the stock market has created. As a result it could go down even if stocks keep climbing.

Most markets are so tightly tied to stocks now, that they will not decline as long as the stock market keeps rising. As I have discussed here previously, this relationship makes no sense, but it is what it is. This is taking place and has to be considered when making trades until it ceases. Here we can trade this market on it's own fundamentals and not have to worry about a stock market influence.

On a separate note, I will be re-entering the dollar long side trade tomorrow on strength if we get some.