This morning's spec hedge report was somewhat of a non event. The specs came in with a net long position of 5.4%, some 0.8% larger than last week. For the week there were a total of 4,474 longs added and 2.522 shorts added, leaving the specs at 11,421 long lots.
Outside day reversal pattern for May 07 today, with a higher opening, new high over yesterday's highs before sinking to a lower low and a lower close than yesterday's session. The moving averages are again receding, with the 50 day now at 54.13 and the 9 day EMA now at 53.69.
The fact that the session ranges have been so narrow do not preclude to any immediate trends, however we feel that Cotton is going to have to take cue from something soon. Overall the market is lacking volatility and lacking impetus, being pulled from both angles (old crop excess stocks / new crop acreage reductions). Momentum is fairly neutral at the moment, reflecting the lack of overall trend, RSI at 45.03
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