Coffee Futures Up 500 Points This Week
Coffee Futures--- Coffee futures this afternoon in New York tumbled 450 points to close around 176.00 a pound in the September contract but is still higher by about 500 points for the week continuing their bullish momentum and at one point hit a two-month high yesterday at 187 a pound before profit-taking took place sending prices back down to today's level also with a very bearish commodity and stock market today due to the fact of a pessimistic jobs outlook which sent the Euro currency down to a new 22 month low causing traders to sell off all hard assets. In my opinion I have been recommending buying coffee and I still believe coffee is going higher at these levels due to the fact that I believe many of the soft commodities have bottomed including sugar, orange juice, cotton, and coffee which I believe will be bull markets ahead of us in many of the commodities due to the fact that they QE3 will come down the pipeline especially if the stock market has any bumps in the road. Coffee prices have risen nearly 25% from contract lows in just three weeks which has been a great rally blamed on massive profit-taking after the long sharp declines in recent months where traders are taking profits and getting out of their short positions and now actually getting into long positions. Coffee volatility is very low even after the recent run-up I still suggest you look at call options risking what the premium cost therefore minimizing risk and being able to stay in the market for several months not having to worry about day-to-day fluctuations. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.
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