The market is lower again Tuesday as traders see only a lethargic holiday market ahead.
The market is lower again Tuesday as traders see only a lethargic holiday market ahead. In addition, the market was influenced lower yesterday by a cascading Dow Jones. Since last Thursday, the Dow has dropped nearly 1,000 points. Tomorrow, the Federal Reserve is apt to hike interest rates, which has many trade and economists worried about the long-term effects on the U.S. economy.
Last night President Xi of China gave a major address to the Chinese people. It was hoped his talk would be on instituting more liberal reforms, but it was actually a redefining of the old communist party Marxist line. Asian stock markets took the speech as bearish and traded lower.
The cotton market needs to see some stellar sales soon or disappointment will pressure prices lower. Subscribers will recall as the outset of the 90-day trade truce, China promised to buy a slug of U.S. agricultural products, but other than one sale of beans, nothing else has come of it.
Technically, the cotton market looks weak for Tuesday as its daily high and opening are the identical. That is, it has been our experience whenever the high comes on the opening tick and holds it all night, it is bearish for the next day. Unfortunately, the cotton market will be subject to the whims of such outside influences as the Dow Jones, crude oil, and the Federal Reserve.
For today, close-in support for March cotton is 77.90 cents and 77.15 cents, with resistance at 80.20 cents and 81.00 cents.