Coffee . . .

72 cents is the 38.2% retrace for the move from 59 cents to 79 cents.

I still have a nice 61.8% target for 66 cents. We should get that since people will be in doubt that the coffee trend has started, and they will try to short coffee.

Hey Waggie, are you starting to store bags of coffee in your house?
 
Coffee futures gapped lower yesterday on fund and speculator selling, some of it influenced by locals looking for sell stops underneath the market.

The market ws under the increasing impression that Funds were too long, due to their recent participation on the upside.

Wednesday, March 11th is the Last Trading Day for March Options in Coffee.
 
guys,
I dont have a futures a/c yet..

is there ANY stock that i could play that would participate
in the bull coffee run?
 
If you read the previous posts, I mentioned a stock named DDRX. I do not know what they do, but if you compare the monthly chart on DDRX since 1997 to coffee on a monthly chart since 1997, the two charts look very similar.
 
Based in Irvine, California DDRX is a specialy coffee roaster, wholesaler, and retailer. They also sell whole beans and ground coffees on a wholesale basis through a network of distributors in the Office Coffee Service (OCS) market, and to other wholesale customers.

The stock trades around $3.50 dollars and has a book value of 3.16 They had Revenues of $53 million last year. Their return on assets and equity is Negative. Diluted EPS was -0.33 cents per share.

http://www.diedrich.com
 
Quote from opmtrader:

Contrarian Indicator Indeed.

Check out this humorous post I made a long time back concerning another indicator from the alternate ideas section this time concerning cocoa: http://www.elitetrader.com/vb/showthread.php?s=&postid=135552#post135552

On a more serious point waggie945 has an excellent point. For any good trade you have to have a catalyst. A catalyst is so crucial. This is something I heard Steven A Cohen preach in an interview and it stuck with me. If you are just shorting because things are "too high" or buying because things are "too low" you are going to get killed. Try some of those strategies walking forward through the Nasdaq Bubble and you will see what I mean. Didn't 1998 look "too high" in many ways? Didn't the last part of 2000 look "too low"? Try riding through the following years waiting to be right. Its a sure way to insanity.

There are so many things out there that look too high (S&P, India, Gold) and too low (USD, Softs) but wait for a catalyst you really understand and your trades will be much better off.
More...

Great post. Should start a new thread on this one and get some input on what constitutes a meaningful catalyst, or ways to spot one. I think this applies to gold right now (not too high yet), and coffee too (not too low yet, but close).
 
You must log in or register to reply here.
Back
Top