Do We Own Cocoa or not?
I got this urgent message this morning from my wife asking if we own cocoa? I asked her why she wanted to know and was the urgency. She told me just read an article about cocoa and there is a shortage and prices have to go up. I chuckled…told here in our programs we trade we have been long cocoa since August. She was relieved…However all I thought was this is probably the end of the cocoa move. When it gets to the news…it is probably the end of the move.
Bottom line do not chase the headlines..When you trend follow…you can stumble into moves without even knowing why. Whys do not matter. Risk matters and try to maintain that…
Past performance is not indicative of future performance