Sugar Futures 2012-05-30

Here is an update regarding my sugar futures trading plan. I am generally looking to try and catch a bottom in the market on the daily charts. The daily chart is showing an MACD divergence pointing towards a buy entry, so I have been looking at buy opportunities on the 60 minute sugar charts.

Here is a picture of today's 60 minute October sugar contract.

We can see labels number 1, 2, and 3 on the chart. #1 indicates my first entry today at 6 am (my time). Entry price was 19.89. As you can see, prices rallied in the early morning to the 20.10 level, this allowed me to move my stop above my break-even point. Later on, the stop was hit and my position was exited at #2 at 19.95 for a few points profit. Later in day, prices entered the low areas. Again, I bought at #3 at 19.83 at around 10:45 am because I am looking for an upwards price move, and this was "cheap picking". At this point in the day, the 60 minute chart was also looking like an MACD divergence. I must admit, I am a little bit concerned that recent lows may not hold. However, that is why I use stops. My overall attitude for sugar is still to be looking for a trend reversal on the daily charts.

Regarding other matters, I had wanted to short the USDX early this week, but then Memorial day and a gap-down opening on Sunday evening prevented me from doing so. By the time the Tuesday session had begun on Monday evening, my opportunity was gone. I thought it was funny that prices opened Sunday exactly where I was planning to take my profits (my plan was to short at 82.50, exit at 82.20-30). Now the USDX is making new highs again into the 83's. I'm hoping this leads to a downward correction soon, but we'll see.

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