Should We Be Selling Cocoa?
- Posted by JC Parets
- on October 3rd, 2013
This is an interesting one: Cocoa
There’s a lot going on in this market that screams sell it. But let’s begin with price. This sucker is up 30% since March and now running into a declining 200 week moving average. I haven’t been long, but if I was I would certainly be taking profits up here. But is there enough to flip it short?
This is a daily candlestick chart of $CC_F showing a bearish divergence in momentum and currently breaking below its 20 day moving average. That’s another problem that I have with it. But fortunately for the cocoa bulls, it’s still above the uptrend line from June, for now…
Seasonally, this could not be a worse time for Cocoa. Look how the month of October stands out:
And sentiment wise, the wrong people love it and the wrong people hate it. It seems to me that the smart money (commercials) are dumping this commodity while the “dumb money” speculating are trying to chase this thing.
I’m not a fan….
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- What I’m Waiting For To Buy Base Metals
- The Must Follow Podcast: JC Parets
- Long Crude Oil and Short Treasury Bonds?
- Fox Business: Time To Jump Into Russia?
- I Like Energy and Emerging Markets for Q2
- Audio: The Current Market Environment
- American Express Approaches Make or Break Point
- Benzinga Fintech Awards Gala April 8th
- BNN Appearance: Crude Oil, Transports & Google
- The Chart The Whole World Is Watching
Archive by Year