Cotton's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.
Cotton is waiting game that few are watching.
Evolution of the Trade: (1) Nibble, (2) Flip, (3) Reset accompanied by a decisive energy build, (4) primary trend decline.
Cotton flipped and generated an impressive rally. The rally encouraged the majority to believe it would last forever despite a massive bearish energy build. Continuation of the primary up trend often requires a DI spike that shakes out trader/investors’ greed.
Wait for the energy build spike. It should happen under a backdrop of capitulation. I talked about this happening months ago. Most traders can't talk a week into the future because they lack an understanding of price, time, and energy cycles.
While I am showing you the door, but you must walk through it.
Are you watching? If cotton outperforms Bitcoin in the second half of the year, will people listen next time? All unanswered questions.
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