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I have a very exciting and highly potential profitable set-up to share with you on Coffee futures (KC-SpotV) traded out of New York.
Mario La Marra and I have been writing about the potential for massive upside on Coffee now for a while. The market has not yet experienced the boom we are anticipating, but I say now is the time and it’s ready to go on the boil.
The reason we are expecting a boom in the price of Coffee is based on 30-year and 10-year cycles culminating in 2007. Chart 1 shows you Coffee prices in 1977 and 1997, when the price of coffee exceeded 300 cents per pound. Coffee moves in increments (ticks) of 0.05 cents per pound, which are worth US$18.75 per contract. With coffee at around 117 cents per pound right now, a rise of 183 cents would bring us to a rally of 300 cents per pound.183 cents is 3660 ticks or US$68,625 per contract! Of course this is working on maximum optimism, but have I got your attention now?
Chart 1 – Coffee Monthly Bar Chart
click chart for more detail
Coffee prices have been tracking sideways for the past couple of years and at the moment are in a slightly sideways trend. However, they are starting to head to an up trend. This market is getting like a wound up spring, ready to let fly.
The market recently made a low on March 20, basically the equinox date for March and one of our key seasonal times. The low came in at 108.80 and was 90 degrees from the average of the double tops that occurred in December, again a Seasonal time. This is all shaping up as a great trading opportunity.
This opportunity on Coffee is special and one that you wait for. It looks like it is ready to go now or any day soon. Even if you miss this first ABC trade, there will be many opportunities to profit on the long side of Coffee over the coming months. The contract to trade right now is May and it is time to remove all your excuses and get ready to take advantage of this call. I know that everyone who took advantage of my work on Sugar found the exercise very much worth their while. This could be your time.
Above and beyond…
Noel Campbell
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