***Note: SGG hit the 100 DMA and retreated as we thought might happen. Stand by for a raised stop Wednesday if it breaks under the 50 DMA now.
As far as new positions-patience is fine for now-There are few reversal patterns and phase changes that need to confirm before jumping in and creating more risk.
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Existing Position: Long SGG: 27.32 ATR: .87
Name of Instrument: iPath Bloomberg Sugar TR ETN
Current Price: 27.62
Original Sell Stop: 24.74
Reason For Trade: Essentially in a downtrend since mid-2011, I have been hawking for a bottom for some time. Over 29.05 on a weekly closing basis, would be a great confirmation but for now, after a confirmed bottom formation on August 24th, we bought on the basis of a phase change to recovery. Our risk is not quite to the low of that bottom, rather under just under the high of that day since that would suggest the bottom will not hold.
First Target: For now, will hold off on a target and instead, if can get to 2 ATRs will go to a no loss stop and reevaluate
