I knew I should have mixed my drinks!

Sometimes we are good. We do as we are told (whoever is doing the telling).

In my case I have been trying for some time to follow my own wisdom and not stray too much from the path. Like any good city chap I enjoy a decent beer. Maybe the odd glass of wine…and I am fond of excellent malts.

Did I mention port? Hmmm. But at least they are never mixed together!

Seems I have definitely messed things up during the winter, though. I became addicted to mochas. Especially with a double shot of an excellent organic Arabica blend with chocolate and perhaps, a luxurious oomph of Dutch cocoa to top it off.

I should have read the signs but completely ignored them. Portents like this should be as obvious as a ‘golden cross’ in technical analysis!

I have been trading coffee of late and while it has had some marvellous results, my recent foray buying the dips from USD1.83 down to current levels has sobered me up somewhat! If that’s what a 15 or so dip can do without causing further chaos to one’s bank account.

My prop trader friends are a little mixed in views after the excitable market chasers all went long above USD2.0!

I am a position builder and as such started at USD 1.83 and added every 3 cents lower. It’s looking precarious and, under USD 1.60 (the 20^th Feb low was just above here), I will accept the stop!

Meantime the runes (me and my mochas!!) were telling me I should have been looking at the other bean. Just look at the cocoa chart. Guess my mother always warned that too much chocolate would be no good for my teeth. Just wish I had got them stuck into this one.

It was a similar pattern to this back in March that persuaded me to look for a reversal before a renewed upswing.

Might need to think about this over another mocha.

 

Author: David Horton is a partner in Market Tutors Ltd in the city (markettutors.com). He has had a significant career in financial markets; he is a trader and trainer with a passion for coaching and mentoring with a good dose of humour.

davidhorton@markettutors.com