A Sweet Looking Opportunity
The scan of the COT reports this week has come up with an item we rarely watch; Sugar. Prices put in a significant low in 2015 and rallied from 10 cents to 24 cents. The Sugar ETN (SGG) rallied from 24 to 54. This year has seen prices drop back, but not through the 2015 low. However, the speculative noncommercials have a greater net-short position and the commercials have a larger net-long position than in 2015. The is the same bearish sentiment characteristic we saw at the bottom of the Canadian Dollar in May. A base appears to be in the making and any upside through the 50-day moving average and last week’s high in the futures and SGG would add to the constructive pattern.
SEE THE COMPLETE REPORT WITH CHARTS HERE and included are the related ETF/ETNs and options that have generated historical extremes in COT numbers in the last two years.
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