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October 19, 2005
Buy Cotton!
I am VERY bullish the Cotton market.
It has backed up the last three days and I consider this a tremendous
opportunity to enter this market as a buyer....If I am right, and cotton
is going up, I think it will extend FAR beyond the
recent highs at 60 cents (see chart below). For this reason, I am
recommending the purchase of slightly out of the money 60 cent calls which
closed today at $865 each.
If it's going, I REALLY think it's going and can
tell you that 15, 20 and 25 cent moves are NOT uncommon in Cotton. Maybe I'm
wrong, but I believe this is the most undervalued commodity on the board,
and, short of some sort of world wide economic collapse, can't imagine it
being anywhere near these very low levels 6-8 months from now....
I guess I can't make it any clearer than
that....
Call me now, into this recent weakness, if you
want to take a look at some numbers....
Thanks,
Bill Rhyne
800-578-1001
770-514-1993
In the past few months, Cotton has moved up 7 or
8 cents while everybody is talking mostly about nothing other than, "the big
crop". This, to me, is quite meaningful.....
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