Breakfast Report (week of 7/26)

Today's Food, Fiber, and Softs Tactical Ranges

*Markets with increased volatility in the overnight session are highlighted

For additional information on using the Breakfast Report for your self-directed trading, please refer to the bottom of this email for a brief explanation.

Most successful traders use a mechanical trading system

• It automates the entire process and provides answers for every decision a trader must make while in the markets
• Having a strategy that tells you precisely what to do allows you to build confidence, consistency, and discipline. 

You need to know 

• What markets to buy or sell
• How much to buy or sell
• When to buy or sell
• When to exit a losing position
• When to exit a winning position
• How to buy or sell (Options or Futures, Micros, Minis, or Full Size)

When managing a trade, position sizing is the most overlooked yet critical in increasing your chances of remaining in the market long enough to catch the next trending market. 

Technical Spotlight - 7/26/23 Cotton (December)

Technicals: The trend following system is Bullish

Trend Activation Date: July 19

Bull Trade Trigger: 83.75* 

Trend Neutralizer: 80.28* A closing settlement below neutralizes the current bull trend

Last Session's Settlement Price: 87.07

Resistance: 84.77*, 86.60-87.60**

Support: 78.11**,  77.17* (recent contract lows)

Seasonals: None

Initial Margin $2,915

Maintenance Margin $2,650

First Notice Date: November 24

Last Trade Date: December 7

Technical Spotlight - 7/26/23 Cocoa (September)

Technicals: The trend following system is Bullish

Trend Activation Date: March 23

Bull Trade Trigger: 2800* 

Trend Neutralizer: 3378* A closing settlement below neutralizes the current bull trend

Last Session's Settlement Price: 3470

Support: 3075**, 2946**, 2850-2800 (pocket support)**, 2700**, 2750 (200 DMA)

Resistance: TBD

Initial Margin $2,090

Maintenance Margin $1,900

First Notice Date: August 25

Last Trade Date: September 14

Technical Spotlight - 7/26/23 Coffee (September)

Technicals: The trend following system is Bearish

Trend Activation Date: May 25

Bear Trade Trigger: 176.10* 

Trend Neutralizer: 167.57* A closing settlement above neutralizes the current bull trend

Last Session's Settlement Price: 161.85

Resistance: 170.00*, 173.21 (200 DMA), 184.80**,190.00***

Support: TBD

Initial Margin $4,455

Maintenance Margin $4,050

First Notice Date: August 23

Last Trade Date: September 19

Technical Spotlight - 7/26/23 Sugar (October)

Technicals: The trend following system is Bearish

Trend Activation Date: June 27

Bear Trade Trigger: 23.66* 

Trend Neutralizer: 25.14* A closing settlement above neutralizes the current bull trend

Last Session's Settlement Price: 24.69

Resistance: Pocket support from 24.00**, 26.00-26.50**

Support: 20.51 (200 DMA)

Initial Margin $1,047

Maintenance Margin $952

First Notice Date: October 2

Last Trade Date: September 29

How to use the Breakfast Report

The Breakfast Report is a technical system that uses end-of-the-day settlement prices to identify "buy," "sell," or neutral positions described as "flat" by analyzing hundreds of data points. The system removes the human element by giving the reader actionable trading ideas that attempt to position for new trends in the market. The system will keep track of the hypothetical open trade equity as reflected in the day's settlement.

How the system works

To establish a "long" position, the settlement must close above the "bull trade trigger." At that point, the "bear trade trigger" will act as a protective stop level.

Conversely, to establish a "short" position, the settlement must close below the "bear trade trigger." The "bull trade trigger" will be a protective stop level at that point.

Remember, the system will not flip directly from long to short but shift to the sidelines, reflecting a "neutral" position for at least one day before establishing a new signal.

Risk Management

Although protective buy and sell triggers are listed, we suggest using stop losses that you are comfortable with financially and technically for risk management. Please consult your broker or the trading desk if you have any questions.