I prefer equal size because the bull spreading has held the July down. If a break occurs, the unwinding of bull spreads could soften the blow to the July.
Anyone know where to find solid fundi research on cotton? This is definately out of my sphere of knowledge. Thanks.
Always start with WASDE for fundamental information. http://www.usda.gov/oce/commodity/wasde/ It includes such tidbits as: "Exports are lowered 300,000 bales to 15.7 million, due to the continued sluggish pace of export sales and shipments and a significant reduction in the import forecast for China. If realized, the carryover projection of 7.1 million bales would be the largest since 2001/02."
I believe that March Cotton is bullish flagging right now. I am looking for more upside at some point. Still long now.
I have rolled longs into May Cotton. I am not ready to add to the position just yet, but am watching closely for a chance to do that.
I just got long July 5435. This reminds me of how Corn suddenly went bid in October. Let us know where you're adding.
Update on Long Cotton position. I incurred a loss of 5 points per contract on the March longs when I rolled into May. My May position is long from .5210. I am not ready to add long yet. Close on the May contract Friday was 53.60